India has, for the first time, released an official estimate of national logistics costs through the new report Assessment of Logistics Cost in India, prepared by the National Council of Applied Economic Research (NCAER) for the Department for Promotion of Industry and Internal Trade (DPIIT). Launched by Commerce Minister Piyush Goyal on 20 September 2025, the study places logistics costs at 7.97% of GDP, substantially lower than the often-cited figure of 13–14%.
The report adopts a hybrid methodology, combining secondary data and nationwide surveys, and provides estimates of freight costs per tonne-kilometer, costs across modes of transport, and firm-size variations. It highlights how major infrastructure initiatives - such as PM GatiShakti, Dedicated Freight Corridors, Bharatmala, Sagarmala, the Unified Logistics Interface Platform (ULIP), and the Logistics Efficiency Enhancement Programme (LEAP) - have helped slow the growth of logistics costs relative to non-services output over the past five years.
This “first official benchmark” allows policymakers to ground infrastructure planning, trade policy, and supply chain reforms in robust data. It also underscores the need for targeted interventions in multimodal integration, last-mile connectivity, and MSME logistics efficiency to bring India closer to global competitiveness.
Follow the full report here: India Releases Assessment of Logistics Cost Report
Assessment of Logistics Cost in India
