Analysing the causes and consequences of increased logistics costs in developing countries like India

Abstract

The Indian logistics industry plays a pivotal role in the nation’s economic growth, serving as the backbone for key sectors such as agriculture, manufacturing, e-commerce, and infrastructure. As one of the fastest-growing logistics markets globally which is currently valued at over $250 billion and is expected to grow at a CAGR of 10–12% in the coming years this industry is of vital importance in boosting our economy to the next milestone. However, India’s logistics costs estimated at 13–14% of GDP are significantly higher than the global average of 8–9%, the goal of this research is to investigate the factors behind this as well as analyse the complexities that makes reducing the cost a challenge.