📋 Tender Overview
Key Takeaways
Indias logistics cost has dropped to 7.97% of GDP.
IPRS 3.0, developed with the Asian Development Bank, rates industrial parks on sustainability, green infrastructure, connectivity, digital readiness, and skills.
The SMILE program launched logistics plans in 8 pilot cities across 8 states to assess existing logistics infrastructure and improve efficiency and reduce costs.
A New Chapter in Indias Logistics Story
Indias logistics is entering a new phase and converting itself into a faster, smarter, and globally competitive sector. From integrated digital platforms that streamline freight movement to modern infrastructure connecting every part of the country, a next-generation logistics ecosystem is steadily taking shape. Backed by targeted policy reforms, institutional realignment, and technology-driven solutions, the government is transforming logistics into a key driver of Indias economic growth and global trade positioning.
A wave of structural changes is reshaping how logistics is planned, executed, and scaled across the country. Platforms like ULIP (Unified Logistics Interface Platform) are integrating data across departments, while LDB (Logistics Data Bank) 2.0 enables real-time visibility of millions of containers. Every HSN (Harmonized System of Nomenclature) code is mapped to its line ministry, improving accountability and policy design. Logistics plans at the city and state levels under the SMILE (Strengthening Multimodal and Integrated Logistics Ecosystem) programme are being aligned with national priorities. Inland waterways transported a record 145.84 million tonnes of cargo last year, while rail congestion is being addressed through dedicated freight corridors. In industrial zones, plug-and-play parks under NICDC (National Industrial Corridor Development Corporation) offer ready infrastructure for investors. On the ground, reforms such as GST and the e-Way Bill have removed long-standing frictions in interstate transport. These interventions are driving a clear objective: reducing logistics costs, improving efficiency, and strengthening Indias position in global supply chains.
Multimodal Logistics along the Gangetic Plain
India is transforming its logistics network along the Gangetic Plain through an integrated multimodal approach that combines road, rail, and inland waterways, making transport faster, cheaper, and greener. The Eastern Dedicated Freight Corridor (EDFC), a high-speed rail freight line, has reduced wagon turnaround times from 15-16 days to 2-3 days and cut transit times from over 60 hours to around 35-38 hours. Freight operations are now managed via a central control centre in Prayagraj, easing congestion on existing rail networks. The revival of the Ganga Waterway, linked to the EDFC at Varanasi, allows manufacturers to move cargo efficiently to eastern ports like Haldia. Rapid development of warehousing and logistics facilities near the corridor has boosted employment, improved inventory management, and enabled timely production and export. These projects involve significant investments from the World Bank, including $1.96 billion for the Eastern Dedicated Freight Corridor and Rail Logistics initiatives and $375 million for the Ganga Waterway development. Together, these efforts are creating an efficient, integrated logistics system that reduces costs, lowers carbon emissions, and strengthens Indias connectivity to domestic and international markets.
Why Logistics Matter More Than Ever
Indias path to economic growth increasingly relies on efficient logistics, which are key to enhancing competitiveness and global connectivity.
The National Logistics Policy and PM GatiShakti have injected new momentum into this transformation, laying the foundation for a more integrated and data-driven logistics ecosystem. But strategy needs precision, and that starts with knowing the true cost of logistics.
Until recently, Indias logistics costs were often overestimated. Commonly cited figures of 13 to 14 percent of GDP were based on partial or external data. This led to confusion in policymaking and misperceptions globally.
That has now changed.
A new, first-of-its-kind study titled Assessment of Logistics Cost in India by the Department for Promotion of Industry and Internal Trade (DPIIT), in collaboration with National Council of Applied Economic Research (NCAER), provides a scientifically grounded estimate. Using a hybrid methodology that combines primary data from over 3,500 industry stakeholders with secondary data from the Ministry of Statistics and Programme Implementation (MOSPI), Reserve Bank of India (RBI), and Goods and Services Tax Network (GSTN), the report places Indias logistics cost at 7.97 percent of GDP and 9.09 percent of non-services output for 2023 to 2024. In absolute terms, the total cost is estimated at Rs24.01 lakh crore.
This is more than just a headline number. The report offers a detailed breakdown by cost components, firm size, and product type. It highlights a critical insight: smaller firms face significantly higher logistics costs, which affect their ability to scale and compete. The study also introduces benchmark freight costs per tonne-kilometre across various transport modes and distances. This data is essential for better supply chain planning and pricing.
Multimodal transport is emerging as a key lever for efficiency. For example, the report shows that for journeys of around 600 kilometres, improving the first and last 50 kilometres can significantly lower the total logistics cost. This underscores the importance of last-mile infrastructure and multimodal logistics integration.
All findings are available through a new interactive dashboard designed to support real-time analysis and informed decision-making. With this data-backed clarity, both the government and industry can make smarter investments, design sharper policies, and upgrade infrastructure faster. This brings India closer to its goal of becomi
