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India Sets Official Logistics Cost at 7.97% of GDP for FY24

A DPIITNCAER study using a hybrid methodology establishes a baseline to guide cost-cutting investments.

Overview

  • The assessment values aggregate logistics spending at ₹24.01 lakh crore at 2023–24 prices and places costs at 9.09% of non-services output for more accurate comparisons.
  • Rail is identified as the most cost-efficient freight mode at ₹1.96 per tonne-km versus road at ₹11.03 and air at ₹72, with air used mainly for high-value, time-sensitive goods.
  • The report shows logistics-cost growth has been slowing, citing PM Gati Shakti, dedicated freight corridors, Sagarmala, integrated check posts and the Unified Logistics Interface Platform as drivers.
  • Recommendations call for greater use of freight corridors, railway upgrades, GPS-based tracking and automation, adoption of green fuels and efficient vehicles, freight consolidation centres, multimodal logistics parks and improved cargo facilities at ports and airports.
  • The estimate is presented as the authoritative benchmark after years of 13–14% figures from partial studies, with officials warning against direct cross-country comparisons due to differing methodologies.