India’s Logistics Costs Drop to 9%, Boosting Global Competitiveness

India achieved a major economic milestone in late 2025, with Union Minister Nitin Gadkari announcing that the country’s logistics cost is expected to drop to approximately 9% of GDP by the end of December, down from the historical average of 14-16%. This dramatic reduction is the direct result of massive infrastructure investment and policy reforms. An IIM Bangalore and IIT study cited by the Minister confirmed a 6% decline in logistics costs already, primarily due to the rapid expansion of the national highway network and dedicated freight corridors.

The core strategy behind this success lies in multimodal integration and digital transformation. Key government initiatives like the PM Gati Shakti National Master Plan and the Unified Logistics Interface Platform (ULIP) are integrating road, rail, air, and water transport networks, removing bottlenecks, and accelerating cargo movement. ULIP, in particular, enables real-time data sharing across all transport systems, which significantly reduces transit times, inventory holding costs, and administrative burdens.

Source: https://www.pib.gov.in/PressNoteDetails.aspx?id=156216&NoteId=156216&ModuleId=3