India’s express logistics industry to
double to $22 bn by FY30
In FY24 alone, the industry contributed $1–1.5 billion in GST collections and $650
million in customs duties, while generating employment for 2.8–3 million people
across urban and rural India.
August 21, 2025
8:07 am
Twitter
Facebook
LinkedIn
WhatsApp
Email
India’s express logistics sector, currently valued at nearly $9 billion in FY25, is on
track to double in size and reach $18–22 billion by FY30, according to industry
estimates. The sector has grown at a CAGR of 12–15% since FY17, driven by the
rapid expansion of e-commerce, MSME exports, and digital transformation.
In FY24 alone, the industry contributed $1–1.5 billion in GST collections and $650
million in customs duties, while generating employment for 2.8–3 million people
across urban and rural India.
The domestic segment, which accounts for 70% of the market and is valued at $6.3–
6.5 billion, is led by surface express services. Policy measures such as Bharatmala
Pariyojna, GST, the E-way Bill, and FASTag have boosted efficiency in road logistics.
The international express segment, making up the remaining 30%, continues to
grow on the back of cross-border e-commerce, MSME digitisation, and rising export
demand.
Structural shifts have also reshaped the market. The pandemic accelerated the
growth of B2C and C2C shipments, which now account for 55% of volumes,
surpassing the traditional B2B share. Quick commerce, hyperlocal delivery, and
direct-to-consumer (D2C) models are fueling demand for faster deliveries,
prompting logistics players to invest heavily in technology, automation, and last-
mile urban hubs.
India’s booming retail e-commerce market, valued at $1,000 billion in FY25, has
seen online penetration climb from 3% in FY19 to 7% in FY25. This has pushed
annual shipments from 1.1 billion to 5 billion, with express logistics accounting for
nearly 60% of the $4–4.5 billion B2C logistics segment.
Experts point to four key trends shaping the industry’s future: consolidation, agile
business models, digital innovation, and sustainability. Policy support through the
National Logistics Policy, PM Gati Shakti Master Plan, and the forthcoming E-
commerce Policy is expected to further accelerate growth.
By FY30, the express logistics industry is projected to create 6.5–7.5 million jobs.
However, infrastructure gaps, customs delays, and urban freight challenges remain
areas of concern.
