RAS question
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?
Correct answer: (C) About 7.97 percent of GDP.
The Assessment of Logistics Cost in India report estimates India's logistics costs at about 7.97 percent of GDP.
Explanation
The report, prepared by NCAER for DPIIT, estimates India's aggregate logistics cost at 7.97 percent of GDP. The figure is important because it is much lower than the commonly repeated 13-14 percent estimate, which comes from external studies based on partial datasets. DPIIT's Logistics division and NCAER used a formal measurement framework in which logistics cost is expressed as a share of GDP and non-services output, with the study estimating logistics cost and examining its structure and drivers. The GDP-share estimate is 7.97 percent.
Why the other options are wrong
- (A) About 13.5 percent belongs to the older, commonly cited higher range, not to the DPIIT-NCAER estimate.
- (B) About 10.2 percent is not the GDP-share estimate in the Assessment of Logistics Cost in India report.
- (D) About 5.5 percent understates the report's estimate of logistics costs as a share of India's GDP.
Concept
Current Indian Economy reporting on logistics costs includes GDP-linked indicators. RAS often draws on official economic reports that replace older headline assumptions with measured, policy-relevant estimates.