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DPIIT released Report on “Logistics Cost in India”: NCAER estimates India’s Logistics Costs at 7.8-8.9%

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DPIIT releases Report on “Logistics Costs in India Assessment and Long-Term Framework”

On 14th December 2023, The Logistics Division of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry (MoCI) launched a report titled “Logistics Cost in India: Assessment and Long-Term Framework” in New Delhi, Delhi.

  • The report shows that the aggregated logistics costs are in the range of 7.8%–8.9% of GDP for 2021-22.

The report was prepared by the National Council of Applied Economic Research (NCAER), along with Asian Development Bank (ADB) experts and task force members.

Key Findings: 

i.The report shows that the logistics costs as a share of GDP declined from a range of 8.6% to 9.8% in 2013-14 to 7.8%-8.9% of GDP in 2021-22.

ii.This is due to the year-on-year decline in fuel prices of 10.6% and 32.0% in 2014-15 and 2015-16, and the marginal decline of 0.8% in 2016-17.


In 2022, Prime Minister(PM) Narendra Modi launched the National Logistics Policy (NLP) to complement the PM GatiShakti National Master Plan (PMGS-NMP).

The NMP aims to improve India’s ranking in the Logistics Performance Index (LPI) to top 25 by 2030.

Note: According to the World Bank’s LPI 2023, India is ranked 38th with LPI score of 3.4. Singapore topped the ranking followed by Finland at 2nd, and Denmark at 3rd.

About the report:

i.The report offers reliable estimates regarding the efficient movement of goods and services.

ii.This report presents

  • a baseline aggregated logistics cost estimate.
  • a framework for long-term logistics cost calculation


The secondary data for estimates was used from the Supply Use Tables and National Account Statistics of the Ministry of Statistics and Programme Implementation (MoSPI) and the NCAER’s 2019 study, “Analysis of India’s Logistics Costs”.

Key People:

The report was unveiled by Rajesh Kumar Singh, Secretary of DPIIT along with Sumita Dawra, Special Secretary of Logistics Division, DPIIT, and Hoe Yun Jeong, Deputy Country Director of ADB India Resident Mission.

About the Ministry of Commerce and Industry (MoCI):
Union Minister – Piyush Goyal (Rajya Sabha – Maharashtra)
Minister of States(MoS) – Anupriya Singh Patel (Constituency- Mirzapur, Uttar Pradesh); Som Parkash (Constituency- Hoshiarpur, Punjab)