Team siliconindia

• India’s express logistics market is expected to reach $18-22 billion by FY30, doubling from FY25 levels.
• The sector is creating massive job opportunities, with 65-75 lakh new roles projected by 2030.
• E-commerce, MSME exports, and fast digital adoption are fueling rapid growth.

India’s express logistics industry is on a fast track to growth, with its market size expected to double to $18-22 billion by FY30, according to a new report by KPMG India. The sector, valued at around $9 billion in FY25, has been growing at a steady 12-15% CAGR since FY17.

This growth is driven by a booming e-commerce sector, rising MSME exports, and widespread digital adoption across the country. The express logistics market includes critical services like cargo handling, warehousing, multi-modal transportation, last mile delivery, and customs clearance, making it an essential part of India’s supply chain.

The domestic express segment currently makes up nearly 70% of the market valued at $6.3-6.5 billion and is mostly powered by surface transport. The remaining 30% comes from international express services, which are expanding rapidly thanks to cross border e-commerce and global demand for Indian products.

Changing consumer behavior post-pandemic, especially in Tier II and Tier III cities, has reshaped the sector. B2C and C2C deliveries now account for 55% of the market, surpassing traditional B2B services. The rise of quick commerce, D2C brands, and hyper local delivery has pushed logistics firms to invest in automation, smart warehousing, and faster urban delivery systems.

Also Read: Japan's MOL Plans Strategic Investment in Indian Logistics

The sector already supports around 28-30 lakh jobs and contributes significantly to government revenue, generating $1-1.5 billion in GST and $650 million in customs duties in FY24.

Government schemes like Bharatmala Pariyojna, GST, E-way Bill, and FASTag have further improved logistics efficiency, setting the stage for robust future growth.