International Logistics Day 2025: Building the Backbone of a USD 7 Trillion India
"Together, we're not just building roads or ports, we're building the future of India," says Nitin Gadkari, Union Minister for Road Transport and Highways
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Roads, railways, ports, and urban corridors are no longer isolated investments, they're part of a cohesive strategy to lower logistics costs, empower businesses, and prepare India for a USD 7 trillion economy.
Union Minister for Road Transport and Highways, Nitin Gadkari, made it clear that logistics is no longer a silent player in India's growth story. "Until recently, our logistics cost was around 16 per cent of GDP. But I'm proud to share that, according to the latest joint survey by IIM and IIT, we've managed to reduce this by 6 per cent. That's a major milestone. This is not just about percentages, it's about real impact on GDP, on exports, on small businesses, and on job creation."
Gadkari further highlighted a pilot project worth INR 600 crore aimed at building hydrogen fuelling infrastructure across 10 highways, underscoring a pivot to cleaner, more efficient logistics. "Together, we're not just building roads or ports, we're building the future of India," he said, calling on logistics stakeholders to embrace multimodal connectivity and alternative fuels.
He added that logistics costs are now down to 10 per cent of GDP and are expected to dip further to 9 per cent by the end of 2025. "Turnaround times at ports are down by 45 per cent, and transport costs have dropped by 25 per cent. This is especially transformative for our MSMEs, who now face fewer barriers to competing globally," he said.
Logistics as an economic fulcrum
India'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."
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