India’s logistics cost for FY 2023–24 has been pegged at ₹24.01 lakh crore, equal to 7.97% of GDP and 9.09% of non-services output, according to a landmark NCAER–DPIIT report. This overturns the long-held belief that costs were 13–14% of GDP.

Using a hybrid data-driven methodology—covering over 500 industry users and 3,000 service providers—the report offers the first globally comparable assessment.

It found rail (₹1.96/PTPK) and coastal shipping (₹1.80/PTPK) most efficient, while road (₹3.78/PTPK) and air (₹72/PTPK) were costlier.

Small firms face higher costs (16.9% vs. 7.6% for large firms). The study calls for multimodal infrastructure, digitization, and green logistics, aligning with the National Logistics Policy and PM Gati Shakti to boost India’s global competitiveness.