Economic Survey 2025–26: India’s Logistics Costs Fall Below 8%, Signalling Infrastructure Payoff

Summary

The Economic Survey 2025–26, citing a DPIIT–NCAER study, reports logistics costs at 7.97% of GDP in FY24 — down from 8.84% in FY23 and markedly lower than the >13% levels seen for much of the previous decade. The Survey attributes the improvement to coordinated infrastructure programmes, notably PM GatiShakti, the Dedicated Freight Corridors (DFCs), Bharatmala and Sagarmala, and a shift toward integrated planning and data-driven decision-making.

PM GatiShakti has brought 57 ministries and more than 1,700 data layers into a National Master Plan; its public dataset release provides 230 curated datasets for private developers and researchers. State and district uptake is growing (27 states with State Logistics Policies; 28 Aspirational Districts using district-level master planning). The Unified Logistics Interface Platform now links 44 systems across 11 ministries and has over 1,700 company registrations.

Key Points

Logistics costs fell to 7.97% of GDP in FY24 (DPIIT–NCAER), a significant drop from historical levels above 13%.
Major national programmes — PM GatiShakti, Dedicated Freight Corridors, Bharatmala and Sagarmala — are credited with improving freight efficiency.
PM GatiShakti has integrated 57 ministries and 1,700+ data layers into a National Master Plan; PM GatiShakti Public makes 230 datasets available to the private sector.
State and district-level planning is expanding: 27 states have notified State Logistics Policies; district modules are in use in 28 Aspirational Districts.
The Unified Logistics Interface Platform connects 44 systems across 11 ministries, spanning thousands of data fields and registering 1,700+ companies.
Lower logistics costs strengthen manufacturing margins and export competitiveness and can translate into lower consumer prices.

Why should I read this

Short and to the point — this is the clearest sign yet that India’s big infrastructure push is starting to pay off. Cheaper freight, smarter planning and public data access mean real wins for manufacturers, exporters and consumers. If you work in supply chain, trade or manufacturing, skim this now — the numbers matter.

Author style

Punchy: This isn’t bookkeeping — it’s a policy milestone. Dropping below 8% is a signal that integrated planning and large-scale projects are moving the needle. Read the detail if you need the evidence; otherwise, file this under ‘infrastructure is delivering’.

Context and relevance

Why it matters: logistics costs have been a persistent drag on India’s manufacturing competitiveness. Moving costs into the 6–8% range (typical of advanced economies) supports Make in India, export growth and supply-chain resilience. The Survey highlights a broader shift from siloed asset creation to system-level design, enabled by data integration and cross-ministry coordination.

What to watch next: full implementation of DFCs and continued rollout of PM GatiShakti data tools, state logistics policies scaling up, and private-sector use of public datasets — all could further lower costs and speed up trade.