Logistics and Transportation Sector
India’s logistics and transportation sector is projected to bevalued at over USD 400 billion by 2025, driven by rapid infrastructure upgrades, e-commerce expansion, and the government’s ambitious programs like PM Gati Shakti and the National Logistics Policy. The sector contributes approximately 14% to India’s GDP, though focused efforts aim to reduce logistics costs to 8-10% of GDP, making India globally competitive.
/ Overview of India's Logistics and Transportation Sector
The rise of multimodal logistics parks, smart warehousing, and increased digitization (such as e-way bills and blockchain tracking) are creating major opportunities for investors. Additionally, India’s road freight market alone is estimated to surpass USD 250 billion by 2025, while rail and air cargo are also seeing double-digit growth rates. Green logistics, EV adoption in fleets, and supply chain automation are emerging as key investment themes in 2025.
4.63 bn ton
Freight Transported
$354 bn
Market Size
$571.01 bn
Market to reach by 2030
11.8%
CAGR in 2025
/ Growth Drivers
Infrastructure Push (NLP & Gati Shakti) India’s goal: slash logistics costs from 14–18% to 8–10% of GDP by 2030; backed by USD 1.3 trillion infrastructure investments (2025–30).
E-commerce Logistics Boom E-commerce logistics market projected to hit USD 16 billion by 2025, fueling demand for last-mile delivery and 3PL services.
Cold Chain Expansion Cold chain logistics growing at 14% CAGR, set to reach USD 58 billion by 2025, driven by healthcare and agri exports.
Surge in Organized Warehousing Grade-A warehouse stock to surpass 400 million sq. ft. by 2025, with strong growth in NCR, Mumbai, Bengaluru, and Pune.
/ Key Investment Opportunities
Logistics sector
∕ Warehousing Expansion: India’s warehousing market will reach USD 34 billion by 2025, with growth in Tier 2 and 3 cities.
∕ Cold Chain Logistics Growth: The cold chain market is expected to hit USD 68 billion by 2025, driven by pharma, food, and dairy.
∕ Logistics Technology & Automation: India’s logistics tech sector will surpass USD 9.2 billion by 2025, fueled by AI, IoT, and automation.
∕ Green Logistics & Sustainability: Green logistics in India will attract USD 8 billion in investments by 2025, focusing on EVs and carbon-neutral supply chains.
Warehousing Sector
∕ Grade A Warehouse: Demand to grow 15% annually, reaching 300 million sq ft by 2025.
∕ E-commerce Warehousing: E-commerce to drive 40% of demand by 2025.
∕ MMLPs: 35 planned, attracting USD 10 billion by 2025-26.
∕ Tier 2 & 3 Cities: Warehousing growth at 20% CAGR through 2025.
∕ Pharma Warehousing: Cold storage to be a USD 5.5 billion segment by 2025.
Transportation sector
∕ Electric Mobility (EVs and Charging Infrastructure): India’s EV market will reach USD 113 billion by 2029; e-bus penetration in public transport will hit 12% by 2025, driving demand for charging stations and fleet services.
∕ Dedicated Freight Corridors (DFC): Over 3,300 km of freight corridors will be completed by 2025, with major opportunities in cargo terminals, rail-linked warehousing, and logistics hubs.
∕ Urban Metro and Rapid Transit Projects: 20+ new metro projects worth over USD 50 billion are planned by 2025, creating investment opportunities in construction, signalling, and smart ticketing.
∕ Air Cargo and Regional Connectivity (UDAN Scheme): India’s air cargo market will reach 4.5 million tonnes by 2025
/ How We Can Help
Foreign businesses, especially mid-cap companies and SMEs, seeking to enter or expand in India’s Logistic and warehouse sector can benefit from:
NEWS & UPDATES
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