- Logistics costs in India have decreased to below 9% of the Gross Domestic Product (GDP), a positive shift attributed to increased state spending on infrastructure like roads, ports, and digitization.
- This reduction in logistics costs has enhanced the competitiveness of Indian producers, both domestically and in global markets.
- The improvement in logistics costs is credited to advancements in the road network, tax reforms, and the digitization of supply chains, reducing expenses related to transportation, warehousing, insurance, and administrative charges.
- India’s logistics performance has improved, as indicated by its rise in the World Bank’s Logistics Performance Index. India climbed six places to rank 38th out of 139 countries in 2023, mainly due to better road and port networks and supply chain digitization.