Skyways Air Services Ltd. IPO

The logistics market in India has evolved into one of the most critical enablers of the country’s economic growth, acting as the backbone that connects producers, suppliers, and consumers across its vast geography. With the increasing pace of industrialization, urbanization, globalization, ... and the rapid growth of e-commerce, the demand for efficient movement of goods has surged, giving rise to a complex and dynamic logistics ecosystem. India’s logistics cost is currently at 7.97% of GDP, reflecting significant improvements in logistics efficiency driven by ongoing investments in transport infrastructure, multimodal connectivity, digitalization, and supply chain optimization. The freight modal split in India is dominated by road transport, which accounts for 66% of freight movement, followed by railways at 22%, waterways at 8%, pipelines at 3.60%, and air transport at just 0.40%, highlighting the country's evolving multimodal logistics ecosystem. Road transport dominates India's logistics landscape, accounting for approximately 66% of domestic freight movement due to its flexibility, accessibility, and door-to-door connectivity. As of FY2026, India's road network spans 63,73,581 km, including 1,46,572 km of National Highways, enabling efficient movement of goods across urban and rural regions while supporting e-commerce, manufacturing, small businesses, and last-mile logistics. The National Highway network has expanded by 61% between FY2014 and FY2026, significantly strengthening freight connectivity across the country. In FY24 alone, around 214 million tonnes of coal were transported via roads, illustrating its crucial role for energy and industrial supply chains. Government initiatives like the Bharatmala Project aim to improve road quality, reduce congestion, and enhance freight efficiency, further strengthening road transport’s role in India’s logistics ecosystem. Rail transport complements roadways by providing a cost-effective and energy-efficient mode for transporting bulk commodities over long distances. Investments in Dedicated Freight Corridors (DFCs) and modernized rail infrastructure have improved the movement of coal, iron ore, steel, cement, fertilizers, and agricultural produce. In May 2026, Indian Railways recorded freight loading of approximately 145 million tonnes, representing a 1.3% year-on-year increase, driven by strong growth in iron ore, steel, and fertilizer traffic. For FY2026-27, freight operations are expected to remain the primary revenue source, with 62% of Indian Railways' traffic revenue (approximately INR 1.89 lakh crore) projected to be generated from freight services, highlighting the sector's critical role in India's logistics ecosystem. Air and maritime transport form the backbone of India's international logistics network. Air transport plays a critical role in moving high-value, time-sensitive, and perishable cargo such as electronics, pharmaceuticals, and express parcels, ensuring rapid connectivity with global markets. Maritime transport remains the primary mode for India's international trade and energy security. During April–December FY2025-26, the 12 Major Ports handled 672.98 million tonnes (MMT) of cargo, registering an 8.22% year-on-year increase from 621.87 MMT during the corresponding period of the previous year. This growth highlights the expanding role of ports in supporting India's trade. Government initiatives such as the Sagarmala Programme continue to drive port modernization, improve coastal shipping, strengthen port connectivity, and promote multimodal integration, thereby reducing logistics costs and enhancing India's global trade competitiveness. The logistics sector in India continues to evolve rapidly, driven by policy reforms, infrastructural investments, and technological innovations such as AI-enabled tracking, digital freight platforms, and integrated supply chain solutions. With industrialization, urbanization, and international trade expanding, new opportunities are emerging across road, rail, air, and maritime transport. The adoption of multimodal logistics, development of Dedicated Freight Corridors, port modernization under the Sagarmala Project, and growing investment in e-commerce and cold-chain infrastructure are reshaping the industry landscape. As the sector scales up, it is expected to adapt continuously to emerging technologies, changing trade patterns, and sustainability imperatives, reflecting India’s dynamic economic growth trajectory. Read more