Daijiworld Media Network - New Delhi

New Delhi, Aug 16: India's logistics industry is gearing up for a major leap, with government data projecting a compound annual growth rate (CAGR) of 10.7% through 2026, propelling it beyond its already substantial $215 billion valuation in 2021.

With the sector now enjoying infrastructure status, it has gained access to long-term, low-cost funding—on par with the roads and railways sectors—further strengthening its role as a critical driver of economic growth.

Government Push Fueling Growth

A series of ambitious reforms and infrastructure initiatives are transforming the logistics landscape:
• National Logistics Policy (NLP) and PM GatiShakti are streamlining operations, integrating multimodal transport networks, and slashing logistics costs.
• GST implementation and the development of Logistics Parks are simplifying the movement of goods and reducing turnaround times.

The sector employs over 22 million people and continues to generate new jobs at scale. A record 145.5 million tonnes of cargo moved via Inland Waterways in 2024–25, indicating improved utilisation of alternative transport routes.

Digital Integration Boosting Transparency

Key digital initiatives such as the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB) have brought greater efficiency and real-time tracking into the system. These tools are critical in enhancing ease of doing business and supporting the government’s aim of making India a global logistics hub.

Strategic Infrastructure in Motion

India’s two Dedicated Freight Corridors (DFCs)—Eastern (Ludhiana to Sonnagar, 1,337 km) and Western (JNPT to Dadri, 1,506 km)—are nearing completion. As of March 2025, over 96% (2,741 km) of the planned corridors are operational. These freight corridors are designed to:

• Decongest passenger rail networks
• Enable faster cargo movement
• Spark industrial growth across key economic corridors

A Resilient Backbone for a Growing Economy

India’s robust logistics sector is a pillar of its status as the world’s fastest-growing major economy, with a 6.5% GDP growth rate in 2024–25. The integrated push for modern infrastructure, employment generation, and digital innovation positions India not just as a regional logistics leader—but as a key player in the global supply chain of the future.

With strong policy backing, ongoing investment, and rapid digitisation, India’s logistics ecosystem is set to become smarter, faster, and more resilient in the years ahead.