India to be among top 25 countries by 2030 in Logistics Performance Index ranking: Invest India

Posted 04 May 2024

2 min read

Invest India highlighted that
- Indian logistics sector is expected to reach USD 380 billion by 2025 from USD 250 billion in 2021.
- India aims to reduce logistics cost from 13%- 14% of GDP to 8%- 10% of GDP by 2030.
Logistics includes transportation and handling of goods between production and consumption points, storage, value addition, and allied services.
- Logistics infrastructure comprises of ports, Multimodal Logistics Parks (MMLPs), warehouses etc.
Advantages of Efficient Logistics Sector
- Ensures smooth and efficient supply chain, minimizes delays and reduces lead time (time taken to complete a supply chain process), crucial for business operations.
- Fosters economic integration by improving connectivity between regions and markets.
- Enhance business competitiveness due to reduction in transportation, storage and distribution costs.
- Employment generation in transportation, warehousing, distribution, and related services.
Challenges before Indian logistics sector
- Fragmented supply chain with numerous small and independent players.
- Complex regulatory framework, bureaucratic procedures etc. hinders business operations
- Lack of qualified personnel proficient in supply chain management.
- Delays in shipments and increased costs due to lack of coordination between states

National Logistics Policy 2022 promotes seamless flow of goods across the country and improves Indian goods competitiveness in domestic and global markets.
MMLPs to improve the country's freight logistics sector by enabling efficient inter-modal freight movement to lower overall freight costs and time etc.
Logistics Efficiency Enhancement Programme (LEEP) to improve freight transport efficiency.
PM GatiShakti to improve logistics efficiency.

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