PM Gati Shakti, logistics policy to push India's World Bank ranking: Report

India aims to rank among the top 25 countries on the World Bank Logistics Performance Index (LPI) by 2030, currently at 38th place. The country's logistics sector is expected to grow at an annual rate of 8.8%, reaching a market size of Rs. 42.35 lakh crore (US$ 484.43 billion) by 2029, up from Rs. 27.73 lakh crore (US$ 317.26 billion) in 2024. Key initiatives like PM Gati Shakti and the National Logistics Policy are critical to this goal, with infrastructure improvements and policy reforms driving the transformation. The government is focused on reducing logistics costs from 13-14% of Gross Domestic Product (GDP) to single digits by 2030, enhancing efficiency through projects like high-speed roads, hyperloops, and new airports. 

The logistics sector's growth is central to India's ambition of becoming a global logistics hub, in line with its vision of a developed economy by 2047. Addressing infrastructure gaps through advanced technologies and coordinated efforts between the government and private sector will be essential to achieve this. The PM Gati Shakti initiative, with projects worth Rs. 11.17 lakh crore (US$ 127.79 billion), aims to improve logistics efficiency across key sectors. India’s strategy also aligns with the global push for multi-modal transport solutions and faster, more efficient supply chains, reinforcing its position as the world’s fastest-growing major economy. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.