India’s logistics sector is now evolving not just through traditional transport but also through digitalisation, new delivery models, and proactive policy support. In the past few years, the country has made rapid improvements in its logistics infrastructure, including drone delivery, cold chain systems, and hyperlocal solutions.
Let’s understand India’s new-age logistics revolution in detail and assess whether this theme can become a significant investment opportunity for investors.
What’s Happening?
India’s logistics market reached an estimated 228 billion US dollars in 2024 and is expected to nearly double to 428.7 billion US dollars by 2033. Traditionally, the supply chain lacked the right ecosystem, which kept logistics costs at 13–14% of GDP, significantly higher than the global average of 8%.
The e-commerce boom, rising demand for faster deliveries, and heavy investment in infrastructure have accelerated this transformation. Innovative models such as drone delivery, cold chain systems, and hyperlocal solutions are now taking efficiency and reliability to new heights. Alongside this, the National Logistics Policy 2022 aims to reduce costs and improve India’s ranking in the Global Logistics Performance Index.
The Rise of Drone Delivery
Drone delivery is proving to be a game-changer in last-mile logistics. In 2024, this ecosystem was valued at around 23 million US dollars, but it is growing rapidly due to supportive policies and successful pilot projects. Drones can bypass traffic and poor road conditions to deliver goods in 30 minutes or less, especially medicines and perishable food. A single drone can help save up to 45 tonnes of carbon emissions per year, which is equivalent to planting around 1,800 trees. Skye Air has launched a service in Bengaluru that delivers packages in just 7 minutes, reducing business delivery costs by nearly 50%.
Startups are addressing challenges such as payload capacity and battery range with improved designs. Skye Air’s flagship drone can carry up to 10 kg. On the regulatory front, the Drone Rules 2021 have simplified the permission process and increased the cargo weight limit to 500 kg. The PLI scheme, reduction of GST to 5%, and the Drone Shakti programme are further supporting startups. Apart from Skye Air, players like Zipline, Swiggy, Dunzo, and Zomato have also participated in BVLOS trials, improving access in remote areas.
Development of Cold Chain Networks and Hyperlocal Delivery
Cold chain infrastructure plays a critical role in maintaining product freshness. In 2024, the cold chain logistics market stood at 11.6 billion US dollars and is expected to exceed 18 billion US dollars by 2029. Post-harvest losses in fruits and vegetables, which currently range between 5 and 16%, are being reduced through IoT sensors, data analytics, and automation. The pharma cold chain segment is also projected to grow from 0.57 billion US dollars in 2024 to 0.8 billion US dollars by 2033. The Pradhan Mantri Kisan Sampada Yojana has supported this growth by providing subsidies for cold storage infrastructure.
Hyperlocal delivery is energising the quick commerce segment. Quick commerce GMV, which was 0.5 billion US dollars in 2022, surged to 6–7 billion US dollars in 2024 and is expected to cross 10 billion US dollars in 2025, reflecting a 73% annual growth rate. The addressable market could reach 24 billion US dollars by 2028, with the hyperlocal segment growing at a 52% CAGR between 2021 and 2025. Blinkit (45% share, 1,500+ dark stores), Swiggy Instamart (25% share, 1,000+ dark stores, 18-minute delivery), and Zepto (22% share, 1.7 million daily orders) are leading this space. Dark stores, AI-based routing, and electric vehicles are enabling this speed and scale.
What Does It Mean for Investors?
Government policies and rapid market expansion are creating attractive opportunities for investors. The PLI scheme, GST cuts, and the DigitalSky platform are supporting drone and logistics hardware manufacturing. Quick commerce players continue to attract strong funding. Zepto raised 450 million US dollars in 2025, reaching a valuation of 7 billion US dollars. Meanwhile, large players like Flipkart, Amazon, and BigBasket are investing heavily in dark stores and electric delivery fleets.
Sustainability is another key driver. Flipkart aims to achieve 100% electric last-mile delivery by 2030 and is already operating 20,000 electric vehicles. Amazon plans to deploy 10,000 EVs by 2025. Additionally, multimodal logistics parks and renewable energy-powered warehouses could offer stable long-term returns. Skill development programmes are also strengthening the workforce, which already employs over 8 million people.
What’s Next?
The National Logistics Policy aims to bring logistics costs down from 14% to below 10% of GDP. The PM Gati Shakti plan is expected to integrate multimodal infrastructure more efficiently. Technologies such as AI, IoT, and automation will further optimise warehouses and fleet management. At the same time, a stronger focus on sustainability, through EVs, rail freight, and green packaging, will help reduce costs and improve India’s competitiveness in global supply chains.
Emerging innovations such as rural logistics, open logistics networks, and drone traffic management systems are shaping the future of the sector. With the right mix of investment and research, this space has the potential to build a faster, more cost-efficient, and environmentally sustainable logistics network, supporting India’s economic ambitions for decades to come.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
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