India’s express logistics sector to grow $18-22 bn by FY30: KPMG

According to the latest report by KPMG, with continued policy support and innovation, India’s express logistics industry is well-positioned to become a global leader and is projected to grow to $18-22 billion by fiscal 2029-30 (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. The sector has emerged as a critical enabler of economic growth, digital commerce and employment generation. Valued at approximately $9 billion in FY25, the sector has witnessed a robust compounded annual growth rate (CAGR) of 12-15 per cent since FY17, driven by the exponential rise in e-commerce, exports by micro, small and medium enterprises (MSMEs) 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 report stated. The sector is a significant contributor to public revenue, with an estimated $1-1.5 billion in gods and services tax collections and $650 million in customs duties in FY24. It also supports 2.8-3 million jobs, both directly and indirectly, across urban and rural India.