New Delhi, April 11: India’s logistics costs have declined to single digits, marking a significant milestone in the country’s infrastructure-led growth journey. Speaking at the BME Conclave 2026, Nitin Gadkari, Union Minister for Road Transport and Highways, highlighted that logistics costs have reduced from approximately 16% to nearly 9%, driven by rapid expansion of expressways and economic corridors.
The improvement is supported by research conducted by premier institutions including Indian Institute of Technology Madras, Indian Institute of Technology Kanpur, and Indian Institute of Management Bangalore, which underscored the role of large-scale infrastructure development in enhancing efficiency in goods movement.
With this progress, India is moving closer to global benchmarks, where logistics costs stand at around 12% in the US and Europe, and between 8–10% in China—significantly improving the country’s export competitiveness.
While infrastructure development has laid the foundation, industry experts emphasize that technology will be key to sustaining and accelerating this momentum. Innovations such as route optimization, real-time tracking, predictive analytics, and automated warehousing are increasingly transforming the logistics ecosystem.
Commenting on the development, a spokesperson from iThink Logistics said:
“The reduction in logistics costs to single digits is a strong validation of India’s infrastructure push. The next phase of efficiency will be driven by technology—through intelligent route planning, real-time visibility, and data-driven decision-making. As supply chains grow more complex, integrating technology with physical infrastructure will be critical to sustaining progress and enhancing global competitiveness.”
The decline in logistics costs is expected to provide a significant boost to export-oriented sectors and manufacturing, while advancing India’s ambition to become a global supply chain hub.
Experts note that the convergence of infrastructure and digital innovation will play a defining role in shaping a more efficient, resilient, and sustainable logistics ecosystem in the years ahead.
