What Factors Contributed to an 85% Surge in India's Transportation and Logistics Deal Value in H1 2025?
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Synopsis
Discover how India's transportation and logistics sector has surged by an astounding 85% in the first half of 2025, reaching a deal value of $609.7 million. This rapid growth reflects investor confidence and the sector's commitment to sustainability amidst rising challenges.
Key Takeaways
- Total deal value in India's logistics sector reached $609.7 million.
- 85% growth compared to H1 2024.
- Deal volumes increased from 16 to 25.
- Focus on sustainability and digital infrastructure.
- Freight rates rose up to 28% due to port congestion.
New Delhi, June 27 (NationPress) The transportation and logistics sector in India experienced remarkable growth in the first half of 2025, with the total deal value escalating to $609.7 million. This represents an impressive 85 percent increase compared to H1 2024, as detailed in a report released on Friday.
Deal volumes saw substantial growth, increasing from 16 to 25, indicating a stronger investor confidence and ongoing interest in the sector's evolution, according to the Grant Thornton Bharat report.
India's logistics industry is currently undergoing a transformative phase characterized by stable demand, changing cost structures, and a heightened focus on sustainability.
Despite challenges posed by rising freight and service costs affecting margins, the movement of inventory remains robust. The sector is making significant advancements in sustainability, with considerable investments in digital infrastructure and low-emission facilities, coupled with supportive policies aimed at reducing costs and enhancing turnaround times, the findings revealed.
The uptick in mergers and acquisitions (M&A) values during Q2 2025 was propelled by notable deals such as Delhivery’s acquisition of Ecom Express.
Private equity investors have continued to support digital-first logistics firms like SmartShift (Porter), Routematic, and Celcius Logistics, showcasing confidence in scalable, asset-light models that enhance efficiency in fragmented last-mile and intra-city deliveries, as mentioned in the report.
Meanwhile, freight rates have surged by up to 28 percent on key trans-Pacific and intra-Asia routes, primarily due to port congestion and container shortages in China. Container backlogs in East Asia have diminished availability in South Asia, compelling Indian exporters to pay premiums for guaranteed slots.
“The logistics sector is leading the way in combating climate change, with sustainability evolving from a regulatory obligation to a business necessity. Incorporating ESG-aligned logistics into corporate strategies will enhance sustainability credentials with investors, consumers, and regulators,” the report emphasized.
In the next five to seven years, approximately one-third of India’s heavy-duty truck fleet is anticipated to transition to LNG, with many private firms already beginning to implement cleaner alternatives, it added.
Point of View
I believe that the substantial growth in India's logistics sector is a testament to the resilience and adaptability of the industry. With increasing investments and a focus on sustainability, this sector is poised for continued expansion and innovation, aligning perfectly with global trends.
NationPress
27/06/2025
Frequently Asked Questions
What is the deal value of India's logistics sector in H1 2025?
The total deal value in India's logistics sector reached $609.7 million in the first half of 2025.
How much did the deal value increase compared to H1 2024?
The deal value surged by 85 percent compared to the first half of 2024.
What are the main challenges faced by the logistics industry?
The logistics industry is facing challenges such as rising freight and service costs, port congestion, and container shortages.
What role does sustainability play in the logistics sector?
Sustainability is becoming a critical focus, with companies investing in digital infrastructure and low-emission facilities to address climate change.
What is expected for India's heavy-duty truck fleet in the coming years?
It is expected that one-third of India's heavy-duty truck fleet will transition to LNG over the next five to seven years.
