Economic Survey 2025–26: India’s Logistics Costs Fall Below 8%, Signalling Infrastructure Payoff
Summary
The Economic Survey 2025–26 highlights a notable decline in India’s logistics costs to 7.97 per cent of GDP in FY24, down from 8.84 per cent in FY23 and 8.79 per cent in FY22. This is a marked improvement from the previous decade when costs hovered above 13 per cent of GDP. The Survey credits coordinated infrastructure programmes — notably PM GatiShakti, the Dedicated Freight Corridors, Bharatmala and Sagarmala — for driving efficiency gains across the logistics ecosystem. PM GatiShakti has integrated dozens of ministries and over 1,700 data layers into the National Master Plan and opened curated datasets through PM GatiShakti Public. Progress at state and district levels (state logistics policies, district master plans) and the Unified Logistics Interface Platform’s systems integration are also cited as contributors to improved planning and reduced duplication of investments.
Key Points
- Logistics costs fell to 7.97% of GDP in FY24 (from 8.84% in FY23), crossing below the 8% milestone.
- Major programmes driving the improvement: PM GatiShakti, Dedicated Freight Corridors (DFCs), Bharatmala and Sagarmala.
- PM GatiShakti has onboarded 57 ministries and integrated more than 1,700 data layers into the National Master Plan; PM GatiShakti Public offers 230 curated datasets to private developers and researchers.
- State-level uptake: 27 states have notified State Logistics Policies; 28 Aspirational Districts use the GatiShakti District Master Plan Module.
- Unified Logistics Interface Platform links 44 systems across 11 ministries and has 1,700+ companies registered, enabling better visibility and coordination.
- Lower logistics costs boost manufacturers’ margins and export competitiveness and should translate into lower consumer prices.
Content summary
The Survey presents the fall in logistics costs as clear evidence that India’s recent infrastructure push is delivering measurable economic results. It frames the change as a shift from isolated asset creation towards integrated, system-level planning and execution. PM GatiShakti is showcased as a central enabler — improving how projects are planned, spotting bottlenecks, optimising networks and preventing redundant capital spending. The Survey also emphasises the expanding data and platform ecosystem that allows public and private actors to make more informed investment decisions.
Context and relevance
Why this matters: logistics are a key input for manufacturing competitiveness, export performance and consumer prices. Historically, India’s high logistics costs were a structural disadvantage; getting down into the 6–8 per cent range common among advanced economies materially improves competitiveness. The developments described tie directly to broader trends: digital and data-driven planning, multimodal transport improvements (especially rail via DFCs), and state-level policy reforms. For investors, policymakers and supply‑chain managers, the Survey’s findings indicate both progress and areas where sustained policy focus could yield further gains.
Why should I read this?
Short and simple — this is the scoreboard showing the infrastructure play is actually working. If you care about manufacturing margins, export growth or cheaper goods at the shop, this one’s worth a quick read. It explains which big projects moved the needle and why better data and joined-up planning now matter more than ever.