India is on a determined path to elevate its position in the global logistics sector, with a clear goal to rank among the top 25 countries on the World Bank Logistics Performance Index (LPI) by 2030. Currently ranked at 38th place, India is focused on implementing a series of transformative initiatives designed to improve efficiency, reduce costs, and enhance infrastructure. These efforts are expected to significantly boost India’s logistics sector, which is projected to grow at an annual rate of 8.8%, reaching a massive market size of Rs. 42.35 lakh crore (US$ 484.43 billion) by 2029, up from Rs. 27.73 lakh crore (US$ 317.26 billion) in 2024.

Key Initiatives Driving India’s Logistics Ambitions

PM Gati Shakti and the National Logistics Policy are at the heart of India’s strategy to revamp its logistics sector. These initiatives are aimed at addressing critical infrastructure gaps, streamlining processes, and improving the overall efficiency of logistics operations across the country. PM Gati Shakti, which focuses on building infrastructure projects worth Rs. 11.17 lakh crore (US$ 127.79 billion), includes ambitious plans for high-speed roads, hyperloops, and new airports. This is expected to reduce logistics costs, which currently stand at around 13-14% of GDP, to single digits by 2030.

Transforming India into a Global Logistics Hub

The growth of India’s logistics sector is essential to achieving the country’s broader economic goals, including becoming a global logistics hub. By enhancing infrastructure and improving logistics efficiency, India aims to solidify its position as the world’s fastest-growing major economy. The focus on multi-modal transport solutions and faster supply chains aligns with global trends, ensuring that India’s logistics industry remains competitive on the world stage.

Challenges and Future Prospects

India’s logistics sector still faces significant challenges, including infrastructure gaps and the need for more coordinated efforts between the government and the private sector. However, the current initiatives—coupled with emerging advanced technologies—are expected to address these issues and pave the way for sustained growth. The continued development of smart logistics solutions, such as automated warehouses and digital supply chains, will play a pivotal role in achieving India’s logistics goals.

Key Targets for 2030

India’s ambitious target for 2030 is to reduce logistics costs to single digits as a percentage of GDP and to dramatically improve the efficiency and global competitiveness of its logistics network. These targets are in line with the country’s vision for a developed economy by 2047, where logistics will be a key enabler of economic growth and a major contributor to global trade.

India’s efforts to revamp its logistics sector through PM Gati Shakti, the National Logistics Policy, and advanced technological infrastructure are set to propel the country to the forefront of the global logistics industry. With a growing economy, increasing market share, and improving logistics efficiency, India’s path to becoming a global logistics leader by 2030 is well underway.

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