India's Logistics Industry Set to Surge to $362 Billion by FY30
Synopsis
The logistics sector in India is on track to reach $362 billion by FY30, driven by a robust 8% annual growth rate fueled by factors such as increased consumption and government initiatives. Discover how this growth impacts various industries.
Key Takeaways
India's logistics sector is projected to reach $362 billion by FY30.
Annual growth rate expected at 8 percent .
Freight volumes to exceed 7,100 million tonnes by FY30.
Manufacturing leads with 18 percent market share.
Logistics costs in India align with global standards at 8 percent of GDP.
New Delhi, April 17 (NationPress) The logistics industry in India is expected to reach $362 billion by FY30, growing from $246 billion in FY25, with an anticipated annual growth rate of 8 percent. This growth is propelled by increasing consumption, expanding trade, and efficiency improvements from significant government initiatives, according to a report released on Friday.
The Brickwork Ratings report forecasts that freight volumes will surpass 7,100 million tonnes by FY30, up from approximately 5,000 million tonnes in FY24, reflecting a compound annual growth rate of 6.1 percent.
Key sectors contributing to this growth include manufacturing, construction, e-commerce, and retail, with the express logistics segment predicted to soar by 14 percent, serving as a vital driver for the industry,” stated Manu Sehgal, CEO of Brickwork Ratings.
Manufacturing leads the logistics sectors, maintaining an 18 percent market share in FY25, supported by robust industrial production, advancements in automotive and pharmaceutical industries, and rising export demands.
Additionally, warehousing and supply chain services represent the fastest-growing components of the value chain, fueled by increased investments and the formalization of the organized market due to GST.
Regionally, West India is at the forefront of this growth, claiming a 35 percent market share, driven by Mumbai’s financial significance, major ports, and industrial strength in Gujarat.
North India follows closely with about 30 percent of the market, benefiting from strategic transit locations, strong infrastructure, and hubs like Delhi-NCR.
South India holds around 25 percent of the share, bolstered by port facilities, IT-centric cities, and manufacturing activities.
East India accounts for 10 percent, but its share is rapidly increasing, supported by port-oriented trade, improved connectivity, and its strategic position as a gateway to the Northeast and neighboring countries.
India’s logistics costs, accounting for 8 percent of GDP, align closely with South Korea (8 percent), the USA (8 percent), and Europe (9 percent), significantly lower than China’s logistics costs, estimated at 14 percent in 2023.
Efforts such as Dedicated Freight Corridors and PM Gati Shakti are designed to further reduce logistics costs. Currently, the logistics ecosystem in India is predominantly road-based, with road transport capturing 65 percent of the market, while rail handles 31 percent of freight.
Point of View
It is vital to recognize the transformative potential of India's logistics sector. The projected growth not only reflects rising consumer demand but also highlights the impact of government initiatives. This upward trajectory is essential for strengthening the economy and enhancing global trade competitiveness.
NationPress
1 May 2026
Frequently Asked Questions
What is the projected growth rate of India's logistics sector?
India's logistics sector is expected to grow at a compound annual growth rate (CAGR) of 8 percent.
What will India's logistics market reach by FY30?
India's logistics market is projected to reach $362 billion by FY30.
Which sectors drive growth in logistics?
Key sectors driving growth include manufacturing, construction, e-commerce, and retail.
What share does manufacturing hold in the logistics market?
Manufacturing holds an 18 percent market share in the logistics sector as of FY25.
How are logistics costs in India compared to other countries?
India's logistics costs are about 8 percent of GDP, comparable to South Korea and the USA, but lower than China's 14 percent.
