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“How the industry is positioned in India”

India's logistics industry has been experiencing robust growth, with its market size expanding at a compound annual growth rate (CAGR) of 11% from fiscal year 2019 to 2024. This momentum is expected to continue, with projections indicating the sector could reach a substantial market size of ₹35.3 trillion by fiscal year 2029. While the current logistics , at 13% of GDP, is relatively high, there's optimism for improvement. As the economy formalizes and connectivity enhances, this percentage is anticipated to decrease to high single digits, signaling increased efficiency in the sector.

What are the Key Drivers to the Growth of India's Logistic Sector?

Initiatives and Policy Support: The Indian government's focus on improving logistics through initiatives like the National Logistics Policy (NLP) and Gati Shakti has been a major growth driver.

The NLP, launched in September 2022, aims to reduce logistics costs from 13-14% of GDP to single digits (8% which is the global average) by 2030.

The PM Gati Shakti National Master Plan, introduced in October 2021, is designed to develop multimodal connectivity infrastructure to various economic zones.

As of August 2023, over 1,400 layers of data have been integrated into the Gati Shakti portal, facilitating better planning and ex*****on of infrastructure projects.

These initiatives are expected to significantly boost efficiency and reduce costs in the logistics sector.





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Employment Growth in Manufacturing:
The ASI indicates that employment in manufacturing grew by 7.5% from 1.72 crore in 2021-22 to 1.84 crore in 2022-23, the highest rate of growth in the last 12 years.
In 2022-23, the manufacturing sector created 13 lakh jobs, an increase from 11 lakh in FY22.