India’s Logistics Market Projected to Reach $600 Billion by FY32 Driven by Infrastructure and Policy Momentum

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India’s logistics sector is on track to double its market valuation from $300 billion to $600 billion by FY 2031–32, according to Subhash Chandra Karol, Director of the Logistics Division at DPIIT. Speaking at the Logistics Sector Skill Council’s PRISM 2026 event, Karol emphasized that the sector accounts for over 13% of India’s GDP and serves as a vital backbone for expanding the domestic manufacturing ecosystem. Backed by strategic initiatives like the PM Gati Shakti National Master Plan for integrated infrastructure planning, highway construction speeds accelerating beyond 15 km per day, and multimodal investments across rail, air, and port connectivity, national logistics costs have dropped to roughly 8% of GDP, significantly lower than historical estimates of 13–14%. Coupled with state-level industrial status recognition for logistics enterprises, GST-driven transit efficiencies, and targeted skill development programs to build an adaptable workforce, India aims to advance its World Bank Logistics Performance Index ranking from 30th into the top 25 global performers within the next five years.

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