India Logistics Industry 2025: Key Export Opportunities & Challenges

Apr 16
5 min read

Updated: 8 hours ago

India is solidifying its role as an emerging engine of global trade. Its evolving logistics ecosystem—combined with a more assertive trade policy—is positioning the country as a key export hub by 2025. Reforms, investments, and digitalization are helping reduce historical barriers, opening new doors for foreign companies interested in importing from the Indian market.

Acknowledging the importance of exports, the Indian government has launched flagship initiatives such as “Make in India” and “Gati Shakti.” These strategies aim to boost domestic production, streamline supply chains, and empower key sectors like technology, textiles, automotive, and pharmaceuticals. Their main goal is clear: reduce costs, maximize efficiency, and increase profitability—positioning India as a global trade leader.

Current Overview of India’s Logistics Market

India’s logistics sector reached an estimated value of USD 338 billion in 2023, contributing 7% of the country’s GDP. Forecasts suggest this share could grow to 11% by 2030, with an estimated value of USD 800 billion.

The Transformation of India’s Logistics Sector

From Informality to Structure: A Crucial Shift

While a significant portion of India’s exports still rely on informal logistics networks, recent years have seen a notable transition toward organization and professionalism. Key indicators of this evolution include:

A rise in structured logistics providers (3PLs, tech companies)
Adoption of global supply chain standards
Stricter regulations fostering transparency

The Rise of E-Commerce in India

The rise of e-commerce platforms has revolutionized the way Indian small and medium-sized enterprises (SMEs) expand internationally. These platforms enable them to access global markets directly, reduce operational costs, and overcome traditional geographical barriers. Moreover, e-commerce offers the advantage of reaching a broader audience in an efficient and scalable way.

India's e-commerce sector is experiencing exponential growth. In 2020, the market was valued at $64 billion, but this figure is expected to nearly triple over the next five years. By 2025, the market is projected to reach $188 billion, driven by increasing digitalization and a growing number of online buyers. This growth benefits not only large corporations but also SMEs, which can now compete on a level playing field in the global marketplace thanks to e-commerce platforms.

Growing Sectors: What Does India Export in 2025?

India has established itself as a key player in global trade thanks to the export of a wide range of products. Among the most prominent sectors are:

Textiles: India is one of the largest exporters of garments, fabrics, and apparel items, renowned for their quality and competitiveness in international markets.
Pharmaceuticals: The country is a global leader in the production and export of generic medicines, supplying affordable and high-quality products to markets worldwide.
IT Services (Information Technology): India is a benchmark in software services, technological development, and outsourcing, serving as a fundamental pillar in the global digital economy.
Agricultural Products: Spices, rice, tea, and other agricultural goods are in high demand, thanks to the country’s diverse climate and strong agricultural tradition.

These sectors not only contribute significantly to India’s economic growth but also reinforce its position in international trade. In addition, they benefit from strong government support to maintain their global competitiveness.

Key Logistics Investments and Projects

Indian Government Initiatives

India’s logistics industry has undergone a remarkable transformation thanks to government initiatives aimed at improving infrastructure and facilitating exports. Below are some key programs that are driving supply chains and strengthening India’s export logistics network:

Sagarmala: This project focuses on enhancing port infrastructure and promoting maritime connectivity, optimizing export logistics costs through more efficient routes.
Bharatmala: Aimed at developing transport corridors and road networks, this program strengthens supply chains by improving land connectivity across the country.
MEIS (Merchandise Exports from India Scheme): Managed by the Directorate General of Foreign Trade (DGFT), this scheme provides financial incentives to exporters, increasing their competitiveness in international markets.
Gati Shakti: A comprehensive initiative designed to integrate various modes of transport and fast-track key logistics projects, improving efficiency and connectivity in the sector.

Special Economic Zones (SEZs)

SEZs offer tax incentives, world-class infrastructure, and direct access to logistics routes to facilitate exports.

As of 2023, there were 272 operational SEZs generating over 2.8 million jobs and exports worth USD 133 billion—primarily in services. These zones play a crucial role in attracting foreign investment and enabling trade from India.

India’s Logistics Sector: Growth & Challenges

Key Drivers of India’s Logistics Sector

India has emerged as a global leader in the services economy, driven by a combination of key factors that have fueled its growth over the past decades. This progress has not only benefited sectors such as technology and finance but has also had a significant impact on the development of its logistics industry—an essential pillar for sustaining a globally competitive services ecosystem. The most notable factors include:

Large, skilled workforce: With one of the world’s largest populations, India has a vast pool of human talent, especially in technical, professional, and international logistics support roles.
English language proficiency: Widespread fluency in English has helped integrate India into global markets, strengthening its role in outsourcing, consulting, and the logistics sector, where seamless coordination with international clients and suppliers is essential.
Presence in strategic sectors: India is a global leader in key industries such as financial services, information technology (IT), outsourcing, business consulting, and increasingly in integrated logistics solutions—offering innovative, cost-effective, and tailored services to meet the demands of international trade.
Government support: Proactive policies and economic reforms have created a favorable environment not only for the growth of the services sector but also for the modernization of logistics infrastructure. This has led to greater integration between digital services and physical logistics systems.

Together, these elements have enabled India to deliver high-quality services at competitive costs and to establish a robust logistics industry ready to support its continued success on the international stage.

India’s Logistics Sector: Major Challenges

Urban congestion and port delays

India’s major cities and ports face significant traffic congestion, causing delays in the loading and unloading of goods and impacting the punctuality of exports. Congestion in urban centers and key terminals remains a critical challenge to logistics efficiency.

Lack of infrastructure in rural areas

Remote regions still face limited connectivity and logistical access. Although improvements are underway in key logistics corridors—such as the Western Dedicated Freight Corridor (DFC), which spans over 1,506 kilometers and connects JNPT Port in Mumbai with Dadri, traversing the states of Maharashtra, Gujarat, Rajasthan, Haryana, and Uttar Pradesh—many rural areas still lack adequate roads, warehousing facilities, and multimodal connections. This hampers their ability to participate in global trade networks.

Bureaucratic barriers

Beyond tariff and non-tariff barriers, India continues to struggle with extensive bureaucracy and strong regional compartmentalization. Slow customs procedures and complex regulatory frameworks persist, creating uncertainty and raising logistics costs for businesses.

Is India Your Next Strategic Trade Partner?

In recent years, exports have become a key pillar of India’s economic growth. Driven by globalization, a skilled workforce, and the attraction of foreign investment, India has successfully positioned itself as a major player in international trade. However, its future success will depend on the ability to optimize logistics, reduce costs, and streamline delivery times.

The Indian government has taken important steps in this direction through initiatives like Make in India, Gati Shakti, and the MEIS program, which offer tax incentives and improve logistics infrastructure. These measures—combined with technological innovation and supportive policies—are transforming India into a global trade hub and boosting its competitiveness in international markets.

At SPARX, we are committed to this growth. Our innovative logistics solutions and international network enable Indian companies to expand efficiently and competitively in key markets.

We facilitate international trade operations to and from India. Our local presence and regional expertise ensure agile, secure, and customized export management.

Ready to take your business to the next level?