India’s Logistics Cost at 7.9% of GDP: Report

India’s Logistics Cost at 7.9% of GDP

News: India’s logistics cost for FY 2023–24 is estimated at ₹24.01 lakh crore, or 7.97% of GDP and 9.09% of non-services output, according to a joint NCAER–DPIIT report.

This marks a shift from earlier estimates of 13–14% of GDP. Using a hybrid, data-driven approach surveying 500 industry users and 3,000 service providers, the report offers a globally comparable assessment.

Coastal shipping (₹1.80/PTPK) and rail (₹1.96/PTPK) emerged as the most efficient modes, while road (₹3.78/PTPK) and air (₹72/PTPK) were costlier.

Smaller firms face higher logistics costs (16.9%) compared to large firms (7.6%). The study highlights the need for multimodal infrastructure, digitization, and green logistics aligned with the National Logistics Policy and PM Gati Shakti.