The estimated logistics costs for 2021–2022 are 7.8%–8.9% of GDP
As to the findings of a survey commissioned by the Commerce and Industry Ministry, the National Council for Applied Economic Research (NCAER) revealed that India’s logistics expenses decreased from 8.6% to 9.8% of GDP in 2013–14 to 7.8%–8.9% of GDP in 2021–2022.
The amount defies previous estimates that put the nation’s logistics expenditures as high as 14% of GDP. It was based on data from the National Accounts Statistics, which included information on the production of the transport, storage, and warehousing sectors. In the upcoming years, these cost projections will be adjusted and monitored on a regular basis.
Rajesh Kumar Singh, secretary of the Department for Promotion of Industry and Internal Trade, stated, “We intend to make this exercise more robust going forward with a primary survey to assess actual time and costs experienced by industry.”
“This range is a ballpark estimate and should be interpreted as an absolute cost measure used for cross-country comparison, rather than as the contribution of logistics to GDP in terms of income and job creation,” NCAER professor Poonam Munjal stated.