New Delhi: India’s logistics sector is projected to nearly triple in size to about ₹120 trillion over the next decade, driven by infrastructure investment, government reforms and greater formalisation of the industry, according to a report released Monday by Omniscience Capital.

The report estimates India’s GDP will rise from $4.2 trillion in 2025 to $10 trillion by 2035, with industry and agriculture together contributing $4 trillion to that growth. Since logistics accounts for about 30% of India’s agri-industry GDP, the market is expected to reach $1.2 trillion, roughly ₹120 trillion, by 2035.

Ashwini Shamil, president and chief portfolio manager at Omniscience Capital, said the sector is poised for a “multi-decade boom” supported by record public spending and structural reforms.

“Government initiatives such as the National Infrastructure Pipeline, PM Gati Shakti and the National Logistics Policy directly address inefficiencies in the sector,” Shamil said. “Meanwhile, digitalisation and the Goods and Services Tax (GST) are accelerating the formalisation of what has largely been a fragmented industry.”

The report notes that government infrastructure spending has already risen from 2.1% of GDP in 2021 to 3.1% in 2025, and is expected to reach 5% by 2030. Investments in roads, railways, dedicated freight corridors and global connectivity projects like the India–Middle East–Europe Economic Corridor (IMEEC) are expected to cut costs, reduce transit time and strengthen India’s role in world trade.

Growth will also be supported by manufacturing expansion under Make in India and Production-Linked Incentive (PLI) schemes. At the same time, digital platforms such as the Unified Logistics Interface Platform, e-way bills and RFID-enabled tracking have improved efficiency.

According to the report, policies including GST 2.0 and the National Logistics Policy could formalise as much as 60% of the sector by 2035, compared to the current unorganised base of around 80%.

IANS