New Delhi, Aug 20
India's express logistics sector is projected to reach $18-$22 billion by FY30, doubling in size, a report said on Wednesday.
The sector grew from $3 billion in FY17 to $9 billion in FY25, with a compound annual growth rate of 12 to 15 percent. In FY25, the express industry is supporting 2.8 to 3 million jobs and contributing $1 to $1.5 billion to GST revenues and $650 million to customs revenues, according to the Express Industry Council of India (EICI) report.
Looking ahead, the report said that this sector will act as a vital enabler for e-commerce, MSMEs and cross-border trade, as it has already transformed from a logistics facilitator to an essential service provider.
The sector played a crucial role during the Covid-19 pandemic by supporting the largest vaccination drive and ensuring the priority delivery of essential goods, it said. Post-pandemic growth is being driven by high internet and smartphone penetration, exponential growth of e-commerce, the rise of MSME output and significant infrastructure expansion into tier 2 and 3 cities, the report said.
"Enhancing operational efficiency through digitisation and automation, while exploring growth opportunities such as positioning India as a trans-shipment hub, will further advance the sector," said Girish Nair from KPMG in India.