New Delhi, Aug 16 (NationPress) India’s logistics industry, which was valued at $215 billion in 2021, is poised for robust expansion with a projected compound annual growth rate (CAGR) of 10.7 percent through 2026, as per government data released on Saturday.

The government’s move to grant infrastructure status to the sector has paved the way for access to more affordable, long-term financing, akin to the funding available for roads and railways, further reinforcing its crucial role in India’s growth narrative.

Numerous government initiatives, such as the National Logistics Policy (NLP), PM GatiShakti, GST, and Logistics Parks, are working towards modernizing the infrastructure and reducing operational costs.

“With over 22 million individuals employed in the sector, millions of new job opportunities are being created. The Inland Waterways recorded a historic cargo volume of 145.5 million tonnes for the 2024–25 period. The integration of digital solutions and platforms like ULIP is enhancing efficiency and transparency throughout supply chains,” the official data indicated.

India holds the position of the fourth-largest economy globally. Various sectors, including services, manufacturing, and agriculture, have driven India’s robust recovery following the pandemic in 2021 and 2022, achieving a cumulative growth of 15.3 percent over these two years.

Since then, India has retained its title as the fastest-growing major economy in the world, boasting a real GDP growth rate (at constant prices) of 6.5 percent for the year 2024-2025.

Stronger supply chains today ensure a more resilient India tomorrow. The government’s commitment to infrastructure enhancement and digital advancement has further catalyzed growth, positioning India as a pivotal logistics hub in Asia.

In July 2017, a dedicated logistics unit was established under the Department of Commerce to oversee the Integrated Development of the Logistics Sector.

The National Logistics Policy (NLP) was introduced in September 2022, aimed at fostering a more integrated logistics ecosystem by boosting efficiency and minimizing logistics expenses. Digital initiatives like the Unified Logistics Interface Platform (ULIP) and the Logistics Data Bank (LDB) are now fully operational, focusing on improving the ease of doing business and facilitating the tracking of containerized Export Import (EXIM) cargo.

The PM GatiShakti Master Plan, launched in October 2021, aims to unify various transport modes into a coordinated network. It has successfully brought together 57 Central Ministries/Departments along with all 36 states and union territories. It has also integrated a staggering 1,700 data layers, resulting in a truly cohesive and comprehensive platform for infrastructure planning.

The Ministry of Railways is actively developing two Dedicated Freight Corridors (DFCs): the Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Sonnagar (1,337 km) and the Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port Terminal (JNPT) to Dadri (1,506 km).

As of March 2025, out of a total of 2,843 kms, 2,741 Route Kilometers (or 96.4 percent) are operational. These corridors are anticipated to expedite industrial advancement and generate substantial employment prospects in logistics and related fields.