INDUSTRY INSIGHTS

FreightFox Insight Brief: India's Logistics Cost Landscape (2023–24) as Released in Sep-2025

National Overview

India's logistics cost stands at ₹24.01 lakh crore, equivalent to 7.97% of GDP and 9.09% of non-services output, per NCAER–DPIIT 2024 report. Despite rising fuel costs, logistics efficiency improved between FY22 and FY24 (CAGR of logistics cost: 7.58% vs non-services output: 10.61%). The goal is to achieve global competitiveness under the National Logistics Policy 2022 and PM Gati Shakti, targeting sub-8% GDP share and top 25 LPI ranking by 2030.

Logistics Cost Breakdown

Logistics Cost Components
Component	₹ lakh crore	% of Total
Transportation (Road + Pipeline)	10.01	41.7%
Storage & Warehousing	5.95	24.8%
Material Handling	3.84	16.0%
Rail Transport	1.61	6.7%

Mode Efficiency (Cost per tonne-km)
Mode	₹ / tonne-km	Remarks
Coastal Shipping	1.80	Most cost-efficient
Rail	1.96	Optimal beyond 600 km
Road (avg)	3.78	Heavy trailer: 1.51 / Light truck: 11.03
Inland Waterways	3.30	Volume constraints
Air Cargo	72.00	High-value goods only

Multimodal break-even: Rail becomes cheaper beyond 600 km (1,000 km for 100 km last mile).

Warehousing Snapshot

• Standard: ₹30/sq ft/month
• Temperature-controlled: ₹58.5/sq ft/month (+95% premium)
• Hazardous goods: ₹56/sq ft/month
• Cost Drivers: Manpower (30%), Premises (20%)

Export–Import Costs

• Container (JNPT → Delhi): Import ₹1,00,000 | Export ₹89,000
• Air Cargo (Mumbai–Pune, 3T): Import ₹54,300 | Export ₹12,700
• Insight: Port & airport charges dominate total logistics cost.

Key Challenges

• Road: 42% fuel cost, 40% empty runs, fragmented regulation.
• Rail: Poor first/last mile connectivity, limited capacity.
• Waterways: Seasonal disruptions, inadequate terminals.
• Air: Sparse regional routes, weak infrastructure.

Strategic Priorities

1. Infrastructure: Dedicated Freight Corridors, MMLPs, deeper waterways.
2. Technology: GPS visibility, digital freight exchanges, automation.
3. Policy: Cross-state harmonisation, green incentives.
4. Measurement: Regular cost benchmarking.

Key Insights

• SME vs Large Enterprise: 16.9% vs 7.6% logistics cost (9.3 pp gap).
• Fuel = 42% of road cost sustainability imperative.
• Rail multimodal ideal for >600 km lanes.
• Real-time benchmarking key under NLP 2022.

FreightFox Summary Perspective:

With logistics costs near 8% of GDP, optimising networks through digital orchestration is vital. FreightFox empowers manufacturers to cut volatility, improve payload efficiency, and achieve sustainable logistics performance.

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Source: NCAER – Assessment of Logistics Cost in India (DPIIT, Sept 2025)

For Detailed Report Refer to the DPIIT Release.

Contact us for your assessment and collaboration at nitish@freightfox.ai‍

+91 70280 17249

https://www.freightfox.ai/