India's Logistics Costs At 7.97% Of GDP Contrary To Commonly Cited Figure Of 14%

New Delhi: India's logistics costs are only at 7.97 per cent of gross domestic product (GDP) contrary to commonly cited figures of 13 to 14 per cent of GDP, official data showed on Thursday, citing assessment by DPIIT and the National Council of Applied Economic Research.

With initiatives like PM Gatishakti Public/Offshore, SMILE, LEAPS 2025, LEADS 2025, IPRS 3.0, LDB 2.0, etc., and green corridors on the move, India is transforming its logistics from a cost centre into a powerful competitive advantage system, the official statement said.

Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme launched logistics plans in eight pilot cities across eight states to assess existing logistics infrastructure and improve efficiency and reduce costs.The Eastern Dedicated Freight Corridor has reduced wagon turnaround from 15–16 days to 2–3 days and cut transit times from over 60 hours to 35–38 hours, with freight operations now managed from a central control centre in Prayagrag.

The revival of the Ganga Waterway, linked to the EDFC at Varanasi, allows manufacturers to move cargo efficiently to eastern ports like Haldia.Inland waterways transported a record 145.84 million tonnes of cargo last year, while rail congestion is being addressed through dedicated freight corridors, the statement said.Platforms such as the Unified Logistics Interface Platform and Logistics Data Bank (LDB) 2.0 are enabling real‑time visibility of millions of containers.

PM GatiShakti Public, a web-based platform provides access to 230 non-sensitive datasets for private entities, researchers, and citizens, promoting transparency, data-driven decision-making, and cross-sector collaboration.In industrial zones, plug-and-play parks under NICDC (National Industrial Corridor Development Corporation) offer ready infrastructure for investors. On the ground, reforms such as GST and the e-Way Bill have removed long-standing frictions in interstate transport.

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