A new study by India’s Department for Promotion of Industry and Internal Trade (DPIIT) places the country’s logistics cost at 7.97 per cent of gross domestic product (GDP) and 9.09 per cent of non-services output for 2023 and 2024. In absolute terms, the total cost is estimated at ₹24.01 trillion (~$268.31 billion).
The study was conducted in collaboration with the National Council of Applied Economic Research (NCAER) combining primary data from over 3,500 industry stakeholders and secondary data from the Ministry of Statistics and Programme Implementation, the Reserve Bank of India and the Goods and Services Tax Network, an official release said.
Until recently, India’s logistics costs were often overestimated. Commonly cited figures of 13 to 14 per cent of GDP were based on partial or external data. This led to confusion in policymaking and misperceptions globally, the release observed.
India’s logistics sector is entering a new phase and converting itself into a faster, smarter and globally competitive sector, it noted.
