Government’s Report on Assessment of Logistics Cost in India

On 20th September 2025, Union Minister of Commerce and Industry launched the report on the Assessment of Logistics Cost in India in New Delhi. The release coincided with celebrations marking a decade of the “Make in India” initiative.

For the first time, India now has a comprehensive, scientifically derived estimate of logistics costs using a hybrid methodology that combines secondary data with nationwide surveys.

Key Points

Policy Mandate: The study follows the National Logistics Policy (2022), which emphasized establishing a uniform framework to measure logistics costs and benchmark them against global practices.
Competitiveness Goal: Minister highlighted that the initiative will reduce the cost of doing business and strengthen India’s competitiveness in global trade.
Data-Driven Planning: The report captures logistics costs across transport modes, product categories, and firm sizes, also providing freight cost per tonne-kilometre estimates.
New Benchmark: According to the assessment by NCAER for DPIIT, logistics costs in India are estimated at 7.97% of GDP, compared with previously misrepresented figures of 13–14% derived from partial datasets.
Strategic Reforms: Government measures include GST reforms, mapping Harmonized System of Nomenclature (HSN) codes to line ministries, creation of a logistics databank, and integrated state and city logistics plans under the SMILE programme with ADB.
Infrastructure Support: Initiatives such as PM GatiShakti National Master Plan, Dedicated Freight Corridors, Bharatmala, Sagarmala, Integrated Check Posts, ULIP, and LEAP have contributed to improving efficiency and reducing costs.
Global Trade Impact: Accurate logistics cost measurement strengthens India’s position in Free Trade Agreement (FTA) negotiations and supports the vision of making India a global logistics hub.