India’s Logistics Costs Expected to Decrease by 2035, Boosting Export Competitiveness

India’s logistics costs are anticipated to reduce to 7–8% by 2035 from the current 13–14% of GDP, aligning the country with global standards and enhancing export competitiveness, as per a report by Grant Thornton Bharat. The report highlighted that the sector saw 48 deals in 2025, a 37% increase from 2024, with investments of $659 million mainly focusing on tech-enabled, asset-light models.
Significant reforms, accelerated infrastructure development, and increased digital integration in India’s transportation and logistics sector indicate a shift towards more interconnected and competitive systems, the report pointed out.
The report also projected a decline in road freight’s share from 72% in 2014 to around 50% by 2035, while rail transport could increase to 40%, supported by Dedicated Freight Corridors.
Bhavik Vora, Partner and Transportation & Logistics Industry Leader at Grant Thornton Bharat, mentioned that the sector witnessed structural transformation in 2025 due to policy reforms, improved infrastructure, and deeper digital integration. Investments in multimodal infrastructure and digital platforms are reshaping freight movement, with GST reforms playing a crucial role in streamlining logistics and promoting more efficient supply chains, Vora added.
India aims to become a digitally synchronized, multimodal logistics hub with 35 operational MMLPs, AI-driven scheduling, and deeper integration into Indo-Pacific trade corridors, according to the long-term vision. Recent GST changes have introduced a dual-rate environment for freight and multimodal transport, impacting cost planning, procurement strategies, and compliance priorities across the logistics ecosystem.
The Unified Logistics Interface Platform has integrated 125 APIs across 11 ministries, facilitating real-time data exchange and reducing friction at key interchange points, the report highlighted. Additionally, five multimodal logistics parks in Chennai, Bengaluru, Nagpur, Indore, and Jogighopa are in advanced stages, reinforcing India’s modal shift agenda.