NEW DELHI, Feb 5: A recent report suggests that robust infrastructure development, driven by initiatives such as PM Gati Shakti and the National Logistics Policy, will enable India to secure a position among the top 25 countries on the World Bank Logistics Performance Index (LPI) by 2030.
Currently, India holds the 38th position in the World Bank LPI out of 139 countries and aims to break into the top 25 by 2030.
The study, conducted by Messe Stuttgart India in collaboration with EAC International Consulting, was released ahead of the upcoming international logistics exhibition, LogiMAT India 2025, set to take place from February 13-15 at the Bombay Exhibition Centre in Mumbai.
The report emphasizes that significant infrastructure initiatives like PM Gati Shakti and the National Logistics Policy will be crucial in achieving India’s target for the LPI.
The Indian freight and logistics market is anticipated to grow at an annual rate of 8.8%, reaching an estimated USD 484.43 billion by 2029, up from USD 317.26 billion in 2024.
India is rapidly becoming a global logistics hub, marking an important step in its journey to becoming a developed economy as part of the government’s vision for Viksit Bharat 2047.
Currently, logistics costs in India account for 13-14% of its GDP. The government is committed to reducing this to single digits by 2030 through infrastructure enhancements and improved supply chain management.
Aligned with the vision of Amrit Kaal, India is progressing towards multi-modal transformation through the development of high-speed roads, hyperloops, and new airports, aiming to reduce transport times by 66% and increase logistics competitiveness.
As the fastest-growing major economy globally, India is projected to surpass Japan, claiming the fourth position by 2026.
To achieve this, strong policy support, including PM Gati Shakti and the National Logistics Policy, is essential.
Under the PM Gati Shakti initiative, 434 projects worth Rs 11.17 lakh crore have been earmarked to improve logistics efficiency across critical sectors such as energy, minerals, cement, port connectivity, and high-traffic areas.
The report also suggests that addressing challenges such as infrastructure gaps and fragmentation requires innovative solutions and advanced technologies, which can position India as a leader in global logistics.
A coordinated effort between the government and the private sector is vital for this progress.
Aditya Gupta, CEO of Messe Stuttgart India, stated that initiatives like PM Gati Shakti are aimed at closing infrastructure and logistics gaps, facilitating the seamless movement of people, goods, and services.
The second edition of LogiMAT India, part of Europe’s largest intralogistics exhibition LogiMAT Stuttgart, is organized by Messe Stuttgart India Pvt Ltd.
Messe Stuttgart India Pvt Ltd is a wholly-owned subsidiary of Germany’s Landesmesse Stuttgart GmbH. (PTI)
