Future of the Logistics Industry in India

India’s logistics industry is expected to witness significant growth in the coming years, driven by various factors such as increased foreign investment, infrastructure improvement, and government support1. According to a report by McKinsey Global Institute, the logistics sector is expected to grow at a compound annual growth rate of more than 10 percent from $200 billion in early 2020 to at least $320 billion in 20252. Furthermore, the Indian logistics market is expected to touch $650.52 billion in the next five years at a CAGR of 8.4%3. To cater to the increasing demand, the industry is expected to witness widespread adoption of advanced technologies and supply chain digitization. The growth of e-commerce in India has further accelerated the demand for logistics services, especially the last-mile delivery segment1. Overall, the future looks promising for India’s logistics industry with abundant opportunities for growth, innovation, and investment.


  1. “Transforming the future of Indian logistics sector.” EY, May 2022, https://www.ey.com/en_in/consulting/transforming-the-future-of-indian-logistics-sector. 2
  2. “India’s post-pandemic logistics sector: The need for technological change.” McKinsey & Company, 23 June 2021, https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/indias-postpandemic-logistics-sector-the-need-for-technological-change.
  3. “Future of logistics: Tech trends to expect and how companies are positioning for success.” ETCIO, Times Internet Limited, 9 June 2022, https://cio.economictimes.indiatimes.com/news/strategy-and-management/future-of-logistics-trends-to-expect-and-how-companies-are-positioning-for-success/100808123.