On September 20, 2025, on the occasion of a decade of 'Make in India', Union Minister of Commerce and Industry Shri Piyush Goyal launched the Assessment of Logistics Cost in India report in New Delhi. For the first time, India will have a comprehensive and scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys. The initiative follows the mandate of the National Logistics Policy 2022 to establish a uniform framework for measuring logistics costs and benchmarking them against global practices. Until now, logistics costs in India were often misrepresented, with commonly cited figures of 13 to 14 per cent of GDP derived from external studies or partial datasets, leading to inconsistent estimates and confusion among policymakers and global stakeholders. As per the current assessment prepared by the National Council of Applied Economic Research (NCAER) for DPIIT, logistics costs in India are estimated at about 7.97 per cent of total GDP. The report provides a comprehensive framework by capturing logistics costs across different transport modes, product categories, and firm sizes, and also presents estimates of freight cost per tonne-kilometre while highlighting the role of multi-modality in enhancing efficiency. Estimates for the previous five years show that the growth rate of logistics costs is gradually slowing compared with the pace of growth in non-services output. This improvement is attributed to initiatives such as the PM GatiShakti National Master Plan, Dedicated Freight Corridors, Bharatmala Pariyojana, Sagarmala Project, Integrated Check Posts, the Unified Logistics Interface Platform (ULIP), and the Logistics Efficiency Enhancement Programme (LEAP). The mapping of each Harmonized System of Nomenclature (HSN) code to the respective line ministry streamlines coordination and strengthens India's position in free trade agreement negotiations.
Piyush Goyal Launches Assessment of Logistics Cost in India Report; Estimates Cost at 7.97% of GDP
Union Commerce and Industry Minister Piyush Goyal released the NCAER-prepared Assessment of Logistics Cost in India report on September 20, 2025, pegging logistics costs at 7.97% of GDP against the commonly cited 13-14% figure derived from external studies.
Key facts
- Report launched by Union Commerce and Industry Minister Piyush Goyal on September 20, 2025, marking a decade of Make in India
- NCAER prepared the report for DPIIT using hybrid methodology combining secondary data and nationwide surveys
- Logistics costs in India estimated at 7.97% of GDP — first scientifically derived estimate
- Previous estimates of 13-14% of GDP were from external studies with partial datasets
- Growth rate of logistics costs slowing due to PM GatiShakti, Bharatmala, Sagarmala, ULIP, and LEAP initiatives
- Each Harmonized System of Nomenclature code mapped to a line ministry to aid FTA negotiations
PYQPrelims/PYQ angle
- RAS 2023 Targets of National Logistics Policy of India — Both directly engage India's National Logistics Policy framework and cost-reduction targets.
- RAS 2018 Bharatmala Pariyojna — Both discuss infrastructure initiatives that reduce logistics costs in the Indian economy.
Mains angle
Q: Discuss the significance of the NCAER Assessment of Logistics Cost in India report and its implications for the National Logistics Policy 2022 framework.
Answer (50 words):
On September 20, 2025, Commerce Minister Piyush Goyal released the NCAER-prepared Assessment of Logistics Cost in India report, estimating logistics costs at 7.97% of GDP—far below the commonly-cited 13-14%. Mandated by the National Logistics Policy 2022, it captures modal, sectoral, and firm-size data, strengthening PM GatiShakti and trade-negotiation benchmarking.
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According to the Assessment of Logistics Cost in India report launched on September 20, 2025, what is the estimated share of logistics costs in India's GDP?
The NCAER-prepared assessment for DPIIT estimates India's logistics costs at about 7.97 percent of total GDP — significantly lower than the commonly cited 13-14 percent figure from external studies with partial datasets.
Source: Press Information Bureau
Frequently asked questions
Who launched the Assessment of Logistics Cost in India report on September 20, 2025?
Union Minister of Commerce and Industry Shri Piyush Goyal launched the report in New Delhi, marking a decade of the Make in India initiative.
What is the estimated logistics cost as a share of GDP per this report?
About 7.97 percent of total GDP, as estimated by the NCAER assessment prepared for DPIIT — a substantially lower figure than the commonly cited 13-14 percent.
Under which policy mandate was the logistics cost measurement framework developed?
The National Logistics Policy 2022, which required a uniform framework to measure logistics costs and benchmark them against global practices.
Which major initiatives have helped slow the growth rate of logistics costs in India?
PM GatiShakti National Master Plan, Dedicated Freight Corridors, Bharatmala Pariyojana, Sagarmala Project, Integrated Check Posts, the Unified Logistics Interface Platform (ULIP), and the Logistics Efficiency Enhancement Programme (LEAP).
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