India’s logistics sector is poised for a massive expansion, with projections estimating its value to triple to ₹120 trillion by 2035. This growth will be driven by public infrastructure investment, policy reforms, and the rapid formalisation of supply chains, according to a new report by Omniscience Capital.
The report highlights that as India’s GDP is expected to rise from $4.2 trillion in 2025 to $10 trillion in 2035, logistics will become a central pillar supporting the country’s trade, agriculture, and industrial growth.
From bottlenecks to boom: The reform-driven growth story
Ashwini Shami, President and Chief Portfolio Manager at Omniscience Capital, noted that the sector is on the verge of a multi-decade boom, as historic inefficiencies are being addressed through targeted reforms.
Government-backed initiatives such as the National Infrastructure Pipeline (NIP), PM Gati Shakti, and the National Logistics Policy (NLP) have set the stage for cost efficiency, speed, and transparency across freight, warehousing, and transport.
“Earlier, fragmented networks and tax structures made logistics a major bottleneck. Today, India is building a competitive, digitised logistics backbone that will support $4 trillion worth of industrial and agri-output over the next decade,” said Shami.
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Infrastructure spending and digitalisation drive change
The report notes that infrastructure spending has already increased from 2.1% of GDP in 2021 to 3.1% in 2025, and is expected to reach 5% by 2030. Investments in roads, railways, and dedicated freight corridors are reducing logistics costs and enabling faster transit times.
Projects like the India-Middle East-Europe Economic Corridor (IMEEC) are expected to position India as a critical node in global supply chains, particularly for energy, minerals, and manufacturing exports.
Meanwhile, digital systems such as the Unified Logistics Interface Platform (ULIP), e-way bills, and RFID-enabled tracking have significantly improved visibility and control in freight management.
Formalisation of MSMEs in logistics underway
With the rollout of GST 2.0 and ongoing implementation of the NLP, formalisation in the logistics sector is accelerating. The report estimates that by 2035, 60% of the industry will be formalised, up from the current level of just 20%.
For logistics MSMEs, this means easier access to capital, participation in government tenders, and greater trust in the marketplace.
From warehousing startups to last-mile delivery firms and cold-chain transporters, small logistics players are now entering a new growth phase where scale, data, and compliance drive opportunity.
A ₹120 trillion opportunity for India’s growth engine
By 2035, India’s logistics market is projected to reach $1.2 trillion, or ₹120 trillion, becoming one of the largest in the world. With the majority of value generation expected to come from digitised and formalised services, MSMEs and mid-tier firms stand to benefit from being early adopters of compliance and technology.
The shift represents more than just growth in numbers — it signals India’s rise as a globally competitive trade hub, with logistics as a key enabler of inclusive and sustained economic expansion.