India’s logistics sector is set to grow significantly by 2025, driven by technological advancements, a focus on sustainability, and the rise of e-commerce. Rajesh Panicker, Co-Founder & Director, Kale Logistics Solutions, highlights the key trends shaping the future, including green practices and cold-chain logistics.
India’s logistics industry is on the verge of a transformative era
India’s logistics sector is gearing up for an exciting transformation, with Rajesh Panicker highlighting game-changing trends set to redefine the industry’s future by 2025!
Projected to expand at 8.8 percent annually, it is expected to reach a staggering US$484.43 billion by 2029. This growth is spurred by technological innovations and infrastructural advancements, with the e-commerce sector playing a pivotal role. India, currently ranked 38th in the Logistics Performance Index, is fast advancing toward a logistics transformation.
Last-Mile revolution
The booming e-commerce market is driving the need for efficient last-mile delivery solutions. By 2025, technologies like EVs, drones, and autonomous robots will revolutionise deliveries, boosting speed and enhancing customer experience. AI and data analytics will help predict delivery times with remarkable accuracy, streamlining logistics operations and improving customer satisfaction. Additionally, hyperlocal delivery models and dark stores—localised warehouses—will emerge to meet the rising demand for faster delivery. These innovations will tackle urban congestion while reducing the environmental impact of traditional delivery methods.
Green Practices at forefront
Sustainability is becoming a top priority for India’s logistics sector, with companies set to adopt green practices like EV fleets, solar-powered warehouses, and eco-friendly packaging by 2025. Technology will play a key role in tracking carbon footprints and optimising supply chains to reduce environmental impact, while government incentives are expected to accelerate the shift toward greener logistics. As climate goals become more urgent, the logistics sector will be pivotal in helping India lower its greenhouse gas emissions.
Cold-chain logistics growth
Cold-chain logistics is gaining importance as demand for perishable goods and vaccines continues to rise. By 2025, India will see significant investments in temperature-controlled storage and transportation. Technologies like automated temperature monitoring and real-time data analytics will ensure the quality of perishable products, reducing spoilage. This trend is especially crucial for sectors like agriculture, food, and pharmaceuticals, where maintaining the integrity of products from farm to fork or lab to patient is essential. The growth of cold-chain logistics will foster consumer trust and boost exports of perishable goods.
Infrastructure development and connectivity
India’s infrastructure improvements, including projects like Bharatmala, Sagarmala, and Dedicated Freight Corridors, will reduce transit times and enhance connectivity between ports, highways, and rail networks. These developments will support multimodal logistics, lower logistics costs, and boost the global competitiveness of Indian products.
As these trends take shape, the sector will become more efficient, sustainable, and globally competitive. Strategic investments and innovative solutions will enable India to meet the dynamic demands of businesses and consumers, shaping a thriving logistics ecosystem by 2025.
