From bytes to billions - Data-driven logistics reshaping India's economy

India's logistics market, projected to reach $557.4 billion by 2032, is poised for transformation through data-driven decision-making. With current logistics costs at 16 per cent of GDP compared to 8-10 per cent in developed economies, the sector faces challenges but holds significant potential for improvement.

- Parijat Sourabh

In recent years, India has emerged as a global economic powerhouse, with its logistics sector playing an important role in this transformation. As the country continues to digitise and modernise its infrastructure, data-led decision-making has become increasingly crucial in optimising logistics operations.

India's logistics market overview:

India's logistics sector is one of the largest globally and is set to grow further according to data from IMARC Group, the market is set to reach $557.4 billion by 2032, exhibiting a growth rate (CAGR) of 7.85 per cent during 2024-2032.

Key factors contributing to market growth include the significant expansion of e-commerce and online retail, the implementation of supportive government policies that encourage logistics services adoption, and emerging technological advancements, mentions the report.

Challenges in the Indian logistics sector:

Despite its size and growth potential, the Indian logistics sector faces several challenges. The industry remains highly fragmented, with numerous small and medium-sized players competing alongside larger firms. Although improvements are being made, India's infrastructure still falls short in many areas, causing inefficiencies and delays.