India Logistics Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: India Logistics Market (2025-2030):

The India Logistics Market size was valued at around USD 230 billion in 2024 and is projected to reach USD 360 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 8% during the forecast period, i.e., 2025-30. Different factors are credited for the expansion of the market. Favorable government policies and initiatives are aiming for infrastructural improvements and the reduction in logistics costs. Logistics costs have been laid down as per global benchmark as per foundations and guidelines of the National Logistics Policy, by enhancing the share of railways in freight movement, which accounted for 18%, through developing dedicated freight corridors (DFCs), expansion of inland waterways and enhancement of road infrastructure. DFCs are 96% complete as of April 2024 and are expected to enhance the efficiency and capacity of rail freight and improve its share in the overall modal mix by 2030.

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Also, the PM GatiShakti National Master Plan supports an infrastructure-first policy at both the central and state levels that will improve connectivity all over India which will reduce both time and cost for logistics. Moreover, the Sagarmala Project seeks to modernize port infrastructure and enhance port connectivity which will increase the logistics market via waterways. Furthermore, the GST regime seeks to rationalize the tax structure to be supportive of reductions in logistics costs. Additionally, the objectives of the Bharatmala Pariyojana intend to optimize efficiency in road transport further boosting the market growth.

Moreover, the rise in the development of Special Economic Zones is driving the market demand. The establishment of SEZs has led to improved logistics infrastructure, reduced transportation costs, and enhanced supply chain efficiency, making India an attractive destination for global trade and investment. For instance, SEZs in India exported goods worth approx. USD 163.69 billion during the financial year of 2023-24. These exports had created a high demand for logistics through roadways, railways, and waterways.

Additionally, the rising Trade Agreements & Exports between India & other nations are further boosting the market growth. The demand for effective transportation, warehousing, and delivery services has become more intense due to a reduction in trade barriers and a rise in exports. Various trade agreements like; the India-Mercosur Preferential Trade Agreement, the India-European Free Trade Association, & the Trade and Economic Partnership Agreement, among others, are facilitating this growth. Also, the high petroleum exports to Europe by India have created an intensive market demand. In terms of value, India's petroleum exports to key European markets saw 250% growth in 2024 making it the largest exporter for oil in these markets. This in turn shows the rising need for transportation & warehousing in the oil and gas sector.

India Logistics Market Driver:

Growth of E-Commerce Driving Market Growth – The explosive rise of E-commerce across India has directly led to a 50% increase in demand for different logistics services capable of quick and convenient delivery. This is ostensibly owing to the increased penetration of smartphones easily engaged in E-commerce. Also, the increasing investments in logistics by big E-commerce companies in the provision of quick delivery and enhanced customer experience is driving the market demand. For instance, in April 2023, Flipkart stepped up its logistics operations to ensure that deliveries across the country are met with ease, keeping in mind the transformation of tech-driven E-commerce. Also, E-commerce rose sharply during and after the pandemic, showing around a 36% increase in orders that have created immense demand for the logistics market in India. Besides, this led to the growing adoption of micro-fulfillment centers, particularly in urban areas, enabling quick delivery times to meet the growing consumer demand for same- or next-day deliveries.

India Logistics Market Opportunity:

Rising Development of Multiple Logistics Parks – Logistics parks are proliferating rapidly in India, creating a rare opportunity for the indian logistics industry participants. The intention of enhancing the logistically-driven infrastructure of the country and boosting international trade is encoded in the government's push for establishing Multi-Modal Logistics Parks (MMLPs). These parks use intermodal transport to facilitate sustainable and efficient movement of goods. For instance, Reliance Industries Limited has been awarded a project to establish an MMLP in Chennai.

Furthermore, within the next few years, the government aims to construct around 35 such parks. These logistics parks would be properly laid out to bring about reductions in transportation cost, and supply chain efficiency, and promote sustainability via reductions in carbon emissions. The establishment of MMLPs is expected to align India's logistics costs closer to the global average market, thus making it more competitive and attractive to companies.

India Logistics Market Challenge:

High Logistics Cost Impeding Market Growth – Higher logistics costs in India pose a significant challenge for the growing market. It accounts for 13-14% as a percentage of GDP which is very high as compared to the global average ranging between 8%-9% that is observed in developed countries. This cost is highly attributed to rising oil prices and intensive toll tax in India. With roads accounting for about 71% of the transit, the running cost continues to increase leaving railways and waterways with a smaller share. Also, poor road infrastructure and congestion contribute to increased transit times and higher fuel consumption which further adds up to the cost of maintenance that directly affects the market growth. Even after various government initiatives to address these issues, it remains a constant issue that impedes market growth.

India Logistics Market Trend:

Increased Use of Automation & Robotics – More than 59% of warehouse and distribution centers in India have employed robotics for multiple tasks like sorting, packing & material handling. These include the use of autonomous mobile robots and automated guided vehicles that further help in the improvement of order fulfillment rates. Also, AI-driven route optimization and real-time tracking are reducing delays and fuel costs, while predictive analytics help businesses anticipate demand surges. This can be highly seen with the increasing use of drones in last-mile delivery that is currently evolving the logistics sector. For instance, various market players like TechEagle offer on-demand drone delivery services for e-commerce, agriculture, and healthcare. Also Swiggy in collaboration with Garuda Aerospace is exploring & testing drone deliveries to enhance delivery speed.

India Logistics Market (2025-2030): Segmentation Analysis

The India Logistics Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Type:

• Forward Logistics
• Reverse Logistics

By type, Forward Logistics leads the India Logistics Market with a market share of around 70%. Increased order volumes & timely delivery to consumers in the booming e-commerce sectors have created an extensive demand for forward logistics. Also, they involve an extensive network of transportation modes that helps them in the transportation of goods smoothly in both domestic and international markets. Moreover, various government initiatives have streamlined logistics operations that help in the reduction of transit times and costs, further boosting the segment growth. Also, they allow a seamless flow of goods from manufacturers to consumers with great efficacy with the help of end-to-end services that boost their demand in the industry.

Based on the Model:

• 2PL (Second Party Logistics)
• 3PL (Third Party Logistics)
• 4PL (Fourth Party Logistics)

Based on the Model, 3PL (Third Party Logistics) leads the India Logistics Market. It holds approx. 61% of the total market value. This strong growth is attributed to a few factors. They are highly flexible in cases of demand fluctuation which helps in their extensive adaptability in the market. With their ability to handle complex logistics demands, they are highly preferred in industries like; manufacturing, e-commerce, retail, and others that further boost the segment’s growth in the market. Also, they provide comprehensive logistic services that allow them to outsource their supply chain operations to experts who streamline the business and help in the effective management of logistics. The growth is further propelled due to cost efficiency using economics of scale as they can offer logistics services at lower cost compared to in-house logistics.

India Logistics Industry Recent Development:

• June 2024: Xpressbees is now diving into the quick-commerce sector amid an uptick in demand on Swiggy Instamart, Blinkit, Zepto, and others.
• July 2024: DTDC partnered with Skye Air Mobility to launch last-mile drone-based deliveries. It started with a successful 7.5 km delivery from Bilaspur to Gurgaon sector 92.

Gain a Competitive Edge with Our India Logistics Market Report

1. India Logistics Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India Logistics Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.

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