Govt unveils framework to scientifically measure India’s logistics costs

Until now, India’s logistics costs were often cited as 13–14% of GDP, based on external studies or partial datasets, leading to inconsistent and sometimes misleading assessments.

September 22, 2025
8:56 am
ASL Narasimha

The government announced the launch of a new framework to scientifically estimate India’s logistics costs, fulfilling a key mandate of the National Logistics Policy.

“For the first time, India will have a comprehensive and scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys,” the Commerce and Industry Ministry said in a statement.

Until now, India’s logistics costs were often cited as 13–14% of GDP, based on external studies or partial datasets, leading to inconsistent and sometimes misleading assessments. The new study, prepared by the National Council of Applied Economic Research (NCAER) for the Department for Promotion of Industry and Internal Trade (DPIIT), estimates logistics costs at 7.97% of GDP.

The report, released by Commerce and Industry Minister Piyush Goyal, captures logistics costs across transport modes, product categories, and firm sizes. It also provides estimates of freight cost per tonne-kilometre and underscores the role of multi-modality in boosting efficiency.

“By providing evidence-based guidance, the study strengthens India’s competitiveness and supports the broader vision of positioning the country as a global logistics hub,” the ministry noted.