India’s logistics sector expected to reach $600 billion, driven by infrastructure, policy reforms and connectivity.
India’s logistics sector is expected to double in size to $600 billion by 2031-32 from around $300 billion currently, driven by infrastructure development, policy reforms and improved connectivity, said Shri Subhash Chandra Karol, Director, Logistics Division, Department for Promotion of Industry and Internal Trade (DPIIT).
He was speaking at PRISM 2026, hosted by the Logistics Sector Skill Council (LSC) on Friday.
Logistics contributed more than 13 per cent to India’s GDP. A DPIIT study conducted in 2025 estimated India’s logistics costs at around 8 per cent of GDP, challenging the earlier perception that they accounted for 13-14 per cent.
India has also improved its position in the Logistics Performance Index (LPI), moving from 46th in 2018 to 30th. The government aims to bring the country into the top 25 within the next five years, said Karol.
The pace of road construction has increased from around 5-6 km a day to more than 15 km a day on average, according to Karol.
The council’s chairman Cyrus Guzder said India’s logistics sector is undergoing a fundamental transformation, driven by technology, automation, digitalisation and growing global integration.
Source: The Hindu Business Line
