The logistics industry in 2024 witnessed a dynamic evolution fuelled by national initiatives, technological advancements, and a growing emphasis on sustainability. Key figures highlight the sector’s remarkable achievements: under the Product-Linked Incentive (PLI) Schemes, India attracted investments of ₹1.46 lakh crore (US$17.5 billion), achieved production/sales worth ₹12.50 lakh crore (US$150 billion), and exported goods valued at ₹4 lakh crore (US$48 billion). These initiatives have generated direct and indirect employment for 9.5 lakh individuals, with incentives disbursed till FY 2023-24 amounting to ₹9,721 crore. The establishment of over 1,300 manufacturing units across 14 sectors is further bolstering India’s logistics and MSME ecosystems.
National initiatives driving change
India’s logistics transformation aligns with its ‘Viksit Bharat’ vision for 2047, supported by groundbreaking government initiatives. The PM Gati Shakti National Master Plan (NMP), launched to integrate multimodal infrastructure planning, has onboarded 44 ministries and 36 states with over 1,614 data layers. This platform has facilitated the evaluation of 213 projects worth ₹15.48 lakh crore, including over 200 logistics infrastructure projects worth ₹5,496 crore recommended by states.
The National Logistics Policy (NLP) complements these efforts, focusing on reducing logistics costs to global benchmarks by 2030, enhancing India’s Logistics Performance Index ranking to the top 25, and fostering a data-driven decision-support ecosystem. Initiatives such as the Comprehensive Logistics Action Plan (CLAP) have been instrumental, along with the integration of 37 digital systems from 10 ministries/departments, tracking containerised EXIM cargo, and introducing logistics courses in 115 universities to upskill the workforce.
Sectoral Plans for Efficient Logistics (SPEL) have been tailored to industries like coal and cement, with ongoing efforts to develop similar plans for food, pharma, fertilisers, steel, and food processing. The Service Improvement Group (SIG), established under the NLP, addresses systemic issues in logistics, ensuring smoother operations.
Industrial growth and digital transformation
The National Industrial Corridor Development Programme has accelerated infrastructure creation with 12 greenfield projects spanning 25,975 acres, attracting investments of ₹28,602 crore. These projects integrate logistics and industrial infrastructure, unlocking ₹1.5 lakh crore in economic potential and generating 9.4 lakh jobs.
Meanwhile, the Open Network for Digital Commerce (ONDC) has revolutionised the digital marketplace by standardising protocols for inventory and order management, engaging 18 logistics service providers, and facilitating operations in over 1,100 cities with 7.01 lakh sellers and service providers. The Industrial Park Rating System (IPRS) has assessed 449 industrial parks, identifying hubs critical for supply chain efficiency, with 41 rated as “leaders” and 90 as “Challengers.”
Knowledge and regional development
The Centre of Excellence (CoE) for City Logistics established at SPA Bhopal and skilling initiatives for over 100 officials demonstrate the government’s commitment to capacity building. The Logistics Ease Across Different States (LEADS) index, set for release in December 2024, measures state-wise logistics performance, with 26 states/UTs already notifying their respective state logistics policies.
Regional schemes such as Uttar Poorva Transformative Industrialisation (UNNATI) and the New Central Sector Scheme for Jammu & Kashmir are fostering logistics and manufacturing growth, offering incentives to enhance regional supply chain infrastructure. Additionally, the One District, One Product (ODOP) initiative is addressing supply chain challenges for indigenous products, improving market accessibility, and providing capacity-building programs for supply chain stakeholders.
Streamlined approvals and policy reforms
The National Single Window System (NSWS) has streamlined logistics-related approvals, integrating 32 ministries and 29 states/UTs and offering features like the PAN-based Single Business ID (SBID) for seamless tracking of approvals. The Jan Vishwas Act 2023 further eased compliance regulations for logistics businesses, fostering growth by decriminalising minor compliance issues.
The Startup India Initiative has encouraged startups, particularly in Tier 2 and Tier 3 cities, many of which specialise in logistics, supply chain technology, and last-mile delivery. Efforts to simplify processes under the Ease of Doing Business framework have reduced compliance hurdles, digitised approvals, and enhanced transparency, benefiting the logistics sector significantly.
Balancing sustainability and resilience
In 2024, the industry faced challenges like geopolitical tensions and supply chain disruptions, prompting companies to adopt automation, predictive analytics, and IoT solutions. These technologies enhanced supply chain visibility and resilience while promoting eco-friendly practices. The global digital logistics market is projected to reach $46.5 billion by 2025, growing at a CAGR of 21 percent, underscoring the sector’s green transformation.
The convergence of cost efficiency and customer centricity remains a focal point, driving deeper collaboration between technology providers, logistics companies, and policymakers. As we delve into the insights from industry leaders, we explore the strategies and innovations shaping the logistics landscape for 2025 and beyond.
