India’s logistics cost in FY 2023-24 has been pegged at 7.97% of GDP by a DPIIT-cited NCAER report. The estimate, India’s first scientifically derived figure, shows the cost is significantly lower than China’s 14.4% and Indonesia’s 24%.

BulletsIn

• India logistics cost 7.97% of GDP in FY24
• China at 14.4%, Indonesia 24%, South Korea 8%
• Report prepared by NCAER using hybrid methodology
• First scientific estimate, replaces older 13–14% claims
• Rail cheapest: ₹1.96 per tonne/km
• Road costlier: ₹11.03 per tonne/km
• Air fastest but costliest: ₹72 per tonne/km
• Non-services sectors logistics ~9.09% of GDP
• Heavy cargo like coal, petrol, iron raise costs
• Reforms credited: Gati Shakti, Sagarmala, DFCs