Logistics costs: India rolls out scientific measurement system
India just rolled out a scientific system to measure logistics costs, aiming to make supply chains more efficient and globally competitive.
Thanks to this new approach, earlier estimates of logistics eating up 13-14% of GDP have been revised down to a much leaner 7.97%.
The National Council of Applied Economic Research (NCAER) achieved this by mixing hard data with real-world surveys for a clearer picture.
Report details logistics costs breakdown
The report breaks down where the money goes—by transport type, product category, and even company size.
It also shows how using multiple modes of transport can enhance efficiency per tonne-kilometer.
The ministry says these insights will help shape smarter policies so India can improve its global supply chain competitiveness.
New rating system for industrial parks
Alongside the new cost framework, the government launched Industrial Park Rating System (IPRS) 3.0 with support from the Asian Development Bank.
Parks are now ranked as Leaders, Challengers, or Aspirers based on their facilities and competitiveness—a move designed to boost transparency and attract fresh investment into India's industrial scene.