Will India's Express Logistics Sector Really Double to $18 Billion by FY30?
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Synopsis
The express logistics sector in India is on track to double in size, potentially reaching $18-$22 billion by FY30. This growth is driven by the e-commerce boom and increased demand for 'Made in India' products. Discover the factors fueling this expansion and the vital role of logistics in the post-pandemic economy.
Key Takeaways
- The express logistics sector is set to double by FY30.
- It currently supports millions of jobs and contributes significantly to GST revenues.
- Growth is driven by e-commerce and the demand for Indian products.
- Digitization and infrastructure development are key to future expansion.
- The sector played a crucial role during the pandemic.
New Delhi, Aug 20 (NationPress) The express logistics sector in India is anticipated to reach $18-$22 billion by FY30, effectively doubling its current size, according to a recent report released on Wednesday.
This sector has expanded from $3 billion in FY17 to $9 billion in FY25, achieving a compound annual growth rate of 12 to 15 percent. By FY25, the express logistics industry will support between 2.8 to 3 million jobs and contribute approximately $1 to $1.5 billion to GST revenues, along with $650 million to customs revenues, as detailed in the report from the Express Industry Council of India (EICI).
The report indicates that the sector will serve as a crucial enabler for e-commerce, MSMEs, and cross-border trade, having evolved from merely a logistics facilitator to an essential service provider.
During the Covid-19 pandemic, the sector played a vital role by supporting the largest vaccination drive and ensuring the timely delivery of critical goods. Post-pandemic growth is being spurred by factors such as increased internet and smartphone usage, a surge in e-commerce, the enhancement of MSME output, and significant infrastructure development in tier 2 and 3 cities, the report states.
“Improving operational efficiency through digitisation and automation, while seeking growth opportunities like establishing India as a trans-shipment hub, will further propel the sector,” said Girish Nair from KPMG in India.
Domestic express logistics constitutes about 70 percent of the total market, valued between $6.3 to $6.5 billion, with surface express making the largest contribution. The international express segment, accounting for around 30 percent, managed 19.5 million shipments weighing approximately 152,300 tons in FY24, showing an average growth rate of 18 percent from FY21 to FY24.
This growth is driven by the rising global demand for 'Made in India' products, which include handicrafts, ethnic wear, home furnishings, auto components, and other manufactured goods.
Point of View
It's essential to recognize the significant impact of the express logistics sector on India's economy. This growth not only supports millions of jobs but also positions India as a crucial player in global trade. As we move forward, the focus on digitization and infrastructure development will be pivotal in sustaining this momentum.
NationPress
20/08/2025
Frequently Asked Questions
What is the projected growth of India's express logistics sector by FY30?
The express logistics sector in India is projected to reach $18-$22 billion by FY30.
How much did the sector grow from FY17 to FY25?
The sector grew from $3 billion in FY17 to $9 billion in FY25.
What role did the sector play during the Covid-19 pandemic?
The sector supported the largest vaccination drive and ensured the priority delivery of essential goods.
What is the contribution of the express logistics sector to jobs?
By FY25, the express logistics sector will support between 2.8 to 3 million jobs.
What factors are driving growth in the logistics sector?
Factors include increased internet penetration, e-commerce growth, and infrastructure expansion in tier 2 and 3 cities.
