Logistics Sector Emerges as Key Driver of India's GDP Growth

By: Y&H CARGO PVT LTD
 
KIRTI NAGAR, India - April 7, 2025 - PRLog -- The logistics sectors is rapidly gaining recognition as one of the most crucial pillars of India's economic growth. As the country continues to scale its ambitions for global trade, industrial output, and digital commerce, a robust and efficient logistics ecosystem has become essential for enhancing competitiveness, reducing costs, and boosting Gross Domestic Product (GDP).

The sector, which includes transportation, warehousing, freight forwarding, and supply chain management, contributes nearly 14% of India's GDP. Recent government initiatives such as the National Logistics Policy (NLP), PM Gati Shakti, and large-scale infrastructure investments are aimed at streamlining the logistics landscape to reduce the cost of logistics from the current 13–14% of GDP to an internationally competitive 8%.

"India's logistics sector is undergoing a historic transformation," said a spokesperson from the Ministry of Commerce. "By improving multimodal connectivity, digitising operations, and easing bottlenecks, we are not just reducing costs but also improving delivery timelines and enabling seamless movement of goods across the country — all of which contribute directly to GDP acceleration."

A more efficient logistics network lowers input costs for manufacturers and exporters, boosts agricultural supply chains, and facilitates the rapid growth of e-commerce and retail. With the emergence of integrated logistics hubs, smart warehousing, and green supply chains, the sector is also expected to generate millions of jobs and support inclusive growth across rural and urban regions alike.

As India aims to become a $5 trillion economy, the logistics sector will continue to play a defining role. Its strategic alignment with GDP growth will not only help Indian businesses compete globally but also attract foreign investment, enhance supply chain resilience, and drive sustainable development across all sectors of the economy.

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