ndia's logistics market reached USD 427.73 billion in 2024 and is projected to grow at a CAGR of 6.5 per cent to nearly USD 802.91 billion by 2034, according to the IMARC Group. Driving this growth are digital reforms, e-commerce expansion, manufacturing revival, and a strong policy framework.
Ketan Kulkarni, Managing Director & CEO of Gati Express and Supply Chain emphasised that logistics is now the fulcrum of economic transformation. "Over the past two years, the National Logistics Policy has quietly sparked a revolution—simplifying documentation, enhancing multimodal integration through PM Gati Shakti, and driving tech adoption via initiatives like ULIP and e-LOG. These reforms are accelerating supply chain efficiency and cost competitiveness while enabling inclusive access for MSMEs and fuelling the expansion of the digital economy."
Kulkarni also underscored the importance of multimodal logistics, which combines the strengths of road, rail, air, and sea transport to reduce costs and transit times while boosting sustainability.
Growing global footprint
With shifting geopolitical dynamics, India is also emerging as a reliable player in the global supply chain network.
"Given the current geopolitical landscape, India is steadily emerging as a major force in global logistics," said Hemant Sikka, MD & CEO of Mahindra Logistics, pointing to the country's strategic positioning and policy direction.
India's improving standing in global indices also reflects its progress. In the World Bank's Logistics Performance Index Report 2023, India ranked 38th out of 139 countries, an impressive jump from 54th in 2014 and 44th in 2018.
"India's logistics story today is defined by scale, speed, and strategic clarity," said Nitin Navneet Tatiwala, Vice President of Marketing, Air Network, and Customer Experience – Middle East, Indian Subcontinent, and Africa, at FedEx.
"From PM Gati Shakti and the National Logistics Policy to digital-first reforms, India is laying the groundwork for a logistics system that is faster, smarter, and more sustainable. Despite global headwinds, merchandise exports crossed USD 437 billion in FY24, and the country's rise in the World Bank's Index reflects the depth of change underway."
Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, noted the real progress being made on the ground. "When you have leadership backed by a clear vision, what once seemed distant becomes achievable. We're seeing this transformation happen in the road sector today, not just in words, but on the ground," he said.
Great hit from logistics tech startups
While the broader tech startup ecosystem saw a dip in funding, logistics tech bucked the trend. According to Tracxn, the Transportation and Logistics Tech sector raised USD 1.6 billion in H1 2025, a 104 per cent increase from H2 2024 and a 54 per cent rise from H1 2024. This surge points to growing investor confidence in logistics solutions.
As Amarendu Prakash, Chairman of SAIL, aptly put it, "As we move toward becoming a USD 5 trillion economy, this journey will require shared goals and collaborative action across the ecosystem."
