PM Gati Shakti, logistics policy to push India's World Bank ranking: Report

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Strong infrastructure development through initiatives like PM Gati Shakti and National Logistics Policy will help India find a place among top 25 nations on the World Bank Logistics Performance Index by 2030, a report said.

India ranks 38th in the World Bank Logistics Performance Index (LPI) out of 139 countries and aims to be in the top 25 by 2030.

The study conducted by Global exhibitor Messe Stuttgart India in partnership with EAC International Consulting was released on Tuesday ahead the international logistics exhibition LogiMAT India 2025 which is scheduled from February 13-15 at the Bombay Exhibition Centre, Mumbai.

The report highlights that strong infrastructure development through initiatives like PM Gati Shakti and the National Logistics Policy are going to be the key drivers to achieve this (India's aim to be in top 25 by 2030 in LPI).

The Indian freight and logistics market is projected to grow at an annual rate of 8.8 per cent to reach USD 484.43 billion by 2029, up from USD 317.26 billion in 2024.

India is fast emerging as a global logistics hub, marking a significant milestone in its journey toward becoming a developed economy under the government's vision of Viksit Bharat 2047, it stated.

At present, the logistics costs in the country account for 13-14 per cent of its GDP, the study said, noting that the government is determined to reduce this figure to single digits by 2030 by enhancing its infrastructure and streamlining supply chains.

Aligned with the Amrit Kaal vision, India is advancing multi-modal transformation through high-speed roads, hyperloops, and new airports, aiming to cut transport times by 66 per cent and boost logistics competitiveness.

As the world's fastest-growing major economy, India is projected to surpass Japan and secure the fourth spot by 2026.

Achieving this requires strong policy support, including PM Gati Shakti and the National Logistics Policy, it stated.

Under PM Gati Shakti, 434 projects worth Rs 11.17 lakh crore have been identified to enhance logistics efficiency across key economic corridors like energy, mineral, cement, port connectivity, and high traffic density sectors.

The report also suggested the best way to address challenges such as infrastructure gaps and fragmentation is to move towards innovative solutions and advanced technologies which can also position India as a global logistics leader.

For this a coordinated effort between the government and private sector is essential, it said.

Aditya Gupta, CEO of Messe Stuttgart India, said initiatives like PM Gati Shakti are designed to bridge infrastructure and logistics gaps, ensuring seamless movement of people, goods, and services.

The second edition of LogiMAT India, part of Europe's biggest intralogistics exhibition LogiMAT Stuttgart, is being organised by Messe Stuttgart India Pvt Ltd.

Messe Stuttgart India Pvt Ltd is the wholly-owned subsidiary of Germany-based Landesmesse Stuttgart GmbH.