India’s logistics costs have declined to single digits, marking a significant milestone in the country’s infrastructure-led growth story. Speaking at the BME Conclave 2026, Union Minister Nitin Gadkari noted that logistics costs have reduced from around 16% earlier to nearly 9%, driven by the rapid expansion of expressways and economic corridors.
The improvement is backed by findings from a report by leading institutions including IIT Chennai, IIT Kanpur, and IIM Bangalore, which highlighted the impact of large-scale infrastructure development on reducing inefficiencies in goods movement. The minister also pointed out that India is now approaching global benchmarks, with logistics costs at around 12% in the US and Europe, and 8–10% in China—significantly strengthening India’s export competitiveness.
While infrastructure has played a foundational role, industry stakeholders believe that technology will be critical in sustaining and further accelerating this momentum. From route optimisation and real-time tracking to predictive analytics and automated warehousing, digital interventions are increasingly shaping the next phase of logistics efficiency in India.
Commenting on the development, a spokesperson from iThink Logistics said,
“The drop in logistics costs to single digits is a strong validation of India’s infrastructure push. However, the next level of efficiency will be unlocked through technology. Intelligent route planning, real-time visibility, and data-led decision-making are helping businesses minimise wastage, reduce transit times, and optimise costs at scale. As supply chains become more complex, the integration of technology with physical infrastructure will be key to sustaining this progress and making Indian logistics globally competitive.”
The development is expected to provide a strong boost to export-driven sectors and manufacturing, while also supporting India’s ambition of becoming a global supply chain hub. Experts note that the convergence of infrastructure and technology will ultimately define how efficiently and sustainably the ecosystem evolves from here.