India Cuts Logistics Costs to 7.97% of GDP

Reforms and Integrated Planning Drive Efficiency Gains​

India’s logistics sector has recorded a major efficiency milestone, with logistics costs reduced to 7.97 percent of the country’s gross domestic product. The government said this progress reflects the outcome of sustained reforms and integrated planning across the logistics and transportation ecosystem, bringing India closer to global benchmarks in cost efficiency.

The reduction highlights improvements in infrastructure planning, modal integration, and execution across freight networks, supporting smoother movement of goods and lowering overall logistics expenditure for the economy.

Rail-Led Infrastructure Expansion Under Gati Shakti​

As part of these efforts, Indian Railways has approved 306 Gati Shakti Cargo Terminals with a combined handling capacity of 192 million tonnes per annum. These terminals are aimed at strengthening rail-based freight movement and improving last-mile connectivity for industries.

Since 2014, around 2,672 million tonnes of freight have shifted from road to rail, a transition that has contributed to savings of more than 143 million tonnes of carbon dioxide emissions. The shift underscores the role of rail transport in enhancing efficiency while supporting environmental objectives.

Private Investment Strengthens Cargo Infrastructure​

Under the Gati Shakti Cargo Terminal policy, private investment of approximately ₹8,600 crore has been mobilised to develop modern cargo handling facilities across the country. The government said the participation of private players has accelerated infrastructure creation and expanded capacity in line with rising freight demand.

Together, these developments signal a structural improvement in India’s logistics framework, with cost efficiency, capacity expansion, and sustainability emerging as key outcomes of the ongoing reforms led by the Government of India.