Piyush Goyal Launches First-Ever Report on Logistics Cost Assessment in India
Union Minister of Commerce and Industry, Shri Piyush Goyal, launched the Assessment of Logistics Cost in India report, giving the country its first comprehensive and scientifically derived estimate of logistics costs. Using a hybrid methodology that combines secondary data with nationwide surveys, the report aligns with the mandate of the National Logistics Policy (2022) to create a uniform framework for measuring costs and benchmarking them globally.
Highlighting the government’s efforts to make logistics more competitive, Shri Goyal noted initiatives such as mapping HSN codes to respective ministries, creation of a logistics databank, integrated state and city logistics plans under the SMILE programme with ADB, and infrastructure projects driven by NICDC. Reforms like GST and multimodal projects under PM GatiShakti, Bharatmala, Sagarmala, and Dedicated Freight Corridors are also reducing inefficiencies and the cost of doing business.
Until now, logistics costs were often misrepresented at 13–14% of GDP, based on partial or external studies. As per the current assessment by NCAER for DPIIT, logistics costs are estimated at 7.97% of GDP. The report also captures costs across transport modes, product categories, and firm sizes, while estimating freight cost per tonne-kilometre and highlighting the role of multi-modality.
Estimates over the last five years show that logistics cost growth is slowing relative to non-services output, reflecting policy and infrastructure improvements. The study provides evidence-based guidance to enhance competitiveness and supports India’s vision of becoming a global logistics hub.
