India’s express logistics industry has emerged as a critical enabler of economic growth, digital commerce, and employment generation. Valued at approximately USD9 billion in FY25, the sector has witnessed a robust CAGR of 12–15 per cent since FY17, driven by the exponential rise in e-commerce, MSME exports, and digital transformation. The express logistics market in India spans a wide range of services including cargo handling, multi-modal transportation, warehousing, last-mile delivery, and customs clearance, making it a vital component of the country’s supply chain ecosystem.
The sector is a significant contributor to public revenue, with an estimated USD1–1.5 billion in GST collections and USD650 million in customs duties in FY24. It also supports 2.8–3 million jobs, both directly and indirectly, across urban and rural India. The domestic express segment, accounting for nearly 70 per cent of the market, is valued at USD6.3–6.5 billion, largely driven by the surface express mode. Government initiatives like Bharatmala Pariyojna, GST, E-way Bill, and FASTag have played a pivotal role in enhancing road logistics efficiency and inter-state transport.
The international express logistics market, comprising around 30 per cent of the total, is expanding rapidly due to the rise in cross-border e-commerce, MSME digitisation, and manufacturing exports. With improved payment systems, customs reforms, and trade facilitation policies, international shipments have become more reliable and scalable.
Post-pandemic shifts in consumer behavior, coupled with smartphone penetration and Tier II/III city growth, have transformed the express logistics landscape. The B2C and C2C segments now represent 55 per cent of the market, overtaking the traditionally dominant B2B segment. The rise of quick commerce, hyperlocal delivery, and direct-to-consumer (D2C) brands has further accelerated demand for faster delivery timelines, prompting logistics providers to invest in technology, automation, and urban infrastructure.
India’s retail e-commerce market, valued at USD1,000 billion in FY25, has seen its online share grow from 3 per centin FY19 to 7 per cent in FY25, with shipments increasing from 1.1 billion to 5 billion. Despite this growth, per capita B2C e-commerce spending in India remains low at USD50, indicating significant future potential. The express logistics segment contributes to nearly 60 per cent of the B2C logistics market, valued at USD4–4.5 billion.
The industry is undergoing a strategic transformation, marked by four key trends: consolidation, agile business models, digital innovation, and sustainability. Backed by progressive policies like the National Logistics Policy, PM Gati Shakti Master Plan, and E-commerce Policy, the sector is poised for long-term growth. However, challenges such as infrastructure gaps, customs bottlenecks, and urban freight integration remain.
Looking ahead, the express logistics industry in India is projected to grow to USD18–22 billion by FY30, creating 6.5–7.5 million jobs. To sustain this momentum, stakeholders must focus on five pillars: agility, efficiency, customer centricity, sustainability, and a robust regulatory framework. With continued policy support and innovation, India’s express logistics sector is well-positioned to become a global leader and a key driver of the country’s Amrit Kaal aspirations.
