New Delhi, Sep 22 (NationPress) India’s logistics sector is poised for remarkable expansion, projected to increase nearly threefold to an estimated Rs 120 trillion within the next decade, according to a recent report released on Monday.

This growth is anticipated to be fueled by significant infrastructure investments, government reforms, and the formalization of the logistics industry, as detailed by Omniscience Capital.

The findings indicate that India’s GDP is predicted to soar from $4.2 trillion in 2025 to $10 trillion by 2035, with both industry and agriculture contributing approximately $4 trillion to this economic boom.

Given that logistics expenses represent around 30 percent of India's agricultural GDP, the logistics market is expected to reach $1.2 trillion, equivalent to about Rs 120 trillion, by 2035.

Ashwini Shami, the President and Chief Portfolio Manager at Omniscience Capital, remarked that the sector is entering a “multi-decade boom,” bolstered by unprecedented public expenditure and reforms.

“Government initiatives such as the National Infrastructure Pipeline, PM Gati Shakti, and the National Logistics Policy are directly addressing the sector's inefficiencies,” he mentioned.

Moreover, the ongoing digitalization and the implementation of the Goods and Services Tax (GST) are accelerating the formalization of the previously fragmented logistics industry,” he added.

The report also notes that government spending on infrastructure has risen from 2.1 percent of GDP in 2021 to 3.1 percent in 2025, with expectations to reach 5 percent by 2030.

Substantial investments in roads, railways, and dedicated freight corridors, along with initiatives like the India-Middle East-Europe Economic Corridor (IMEEC), are anticipated to lower costs, shorten transit times, and enhance India's position in global trade.

The sector's expansion will also be reinforced by increasing manufacturing output under the Make in India and Production-Linked Incentive schemes.

Simultaneously, the digitization of logistics through platforms like the Unified Logistics Interface Platform, e-way bills, and RFID-enabled tracking has significantly improved operational efficiency.

New policies such as GST 2.0 and the National Logistics Policy are projected to formalize up to 60 percent of the industry by 2035, a significant increase from the current unorganized base of approximately 80 percent.