ECONOMIC OUTLOOK
INDIAN ECONOMIC OVERVIEW
Despite a challenging global environment marked by geopolitical tensions and trade fragmentation, the Indian economy demonstrated remarkable resilience in FY 2025–26, retaining its position among the worlds fastest-growing major economies with a GDP of approximately US$ 4.15 Trillion. Real GDP growth accelerated to 7.7% from 7.1% in FY 2024–25, driven by strong domestic consumption, sustained investment momentum and broad-based economic expansion across key sectors.
India maintained its growth trajectory, despite heightened geopolitical tensions in West Asia and an uncertain global environment, underscoring the resilience of the domestic economy. The growth momentum was further supported by favourable macroeconomic fundamentals, including benign inflation, strong domestic demand and healthy external sector indicators. Foreign exchange reserves remained robust at US$ 698.49 Billion as of April 2026, providing a strong buffer against external shocks and reinforcing confidence in the countrys long-term growth prospects.
| 7.70% | 7.80% | US$ 698.49 Billion |
| Real GDP Growth (FY 2025\u201326) | Gross Fixed Capital Formation Growth | Foreign Exchange Reserves |
Segmental Highlights
Sectoral performance during FY 2025-26 remained broad-based across the agriculture, manufacturing, and services sectors, with services continuing as the primary driver of economic expansion. Services GVA grew by 9.3% in FY 2025-26, supported by strong performance in consumption-linked segments, particularly Trade, Repair, Hotels, Transport, Communication and Services related to Broadcasting and Storage, which recorded growth of 11.0%.
Manufacturing recorded full-year GVA growth of 10.7% in FY 2025-26, indicating strengthening industrial growth during the year. This builds on the sectors double-digit growth in FY 2023-24 and FY 2025-26, highlighting its increasing contribution to overall economic growth.
The strength in both services and manufacturing was reflected in robust growth across the secondary and services segments, with the Secondary sector recording 8.8% and the Tertiary sector 9.3% during the year, underscoring the broad-based nature of sectoral expansion.
Source:
Provisional Estimates of Annual GDP for 2025-26 (MoSPI, June 2026)
Union Budget FY 2026-27: Manufacturing Sector Driving Indias Next Growth Phase (PIB, February 2026)
Inflation and
The macroeconomic environment remained supportive in FY 2025 26, with inflation easing significantly. Headline inflation averaged 3.40% during the reported financial year, primarily moderated by favourable trends in food and fuel prices, which collectively constitute 52.70% of the CPI basket.
Retail inflation based on the Consumer Price Index stood at 3.48% in April 2026 (provisional), with food inflation at 4.20%, continuing the moderation trend.
This moderation supported purchasing power and consumption. Amid this benign inflationary environment, the Reserve Bank of India maintained a calibrated stance, keeping the policy repo rate under the LAF unchanged at 5.25%, ensuring stable financial conditions and sustained economic momentum.
Infrastructure Development
Infrastructure development remained a key priority during FY 2025-26, driven by 4.20 times increase in government capital expenditure from 2.63 Lakhs Crore in FY 2017-18 to 11.21 Lakhs Crore in FY 2025-26, reflecting sustained public investment in capacity creation.
This investment translated into significant gains in transport infrastructure, with the national highway network expanding by approximately 60% from 91,287 km in FY 2013-14 to 1,46,572 km in FY 2025-26, alongside a sharp rise in high-speed expressways from 550 km in FY 2013-14 to 5,364 km in FY 2025-26, while railway infrastructure strengthened with the network reaching 69,439 route km as of 31 March, 2025, targeted additions of 3,500 km in FY 2025-26, and electrification levels at 99.10% by October 2025, enhancing connectivity, efficiency, and sustainability.
Complementing this multi-modal expansion, India emerged as the worlds third-largest domestic aviation market, with airports increasing from 74 in CY 2014 to 164 in CY 2025, supporting passenger and cargo movement and strengthening overall logistics efficiency.
4.20x
Government Capex Growth
~60% Growth
National Highway Network
69,439 Route km
Railway Network
5,364 km
High-Speed Expressways
Source: Press Release Page /Press Information Bureau
Resilience during Geopolitical Tensions
Despite a fragile global environment marked by geopolitical tensions, particularly the conflict in the middle east and trade fragmentation during FY 2025-26, Indias economy has demonstrated strong resilience, supported by sustained investor confidence and a robust external position. Amid a subdued global investment gross FDI inflows remained strong at US$ 94.53 Billion during FY 2025-26, contributing to the strengthening of external buffers.
This was reflected in foreign exchange reserves rising to US$ 698.49 Billion in April 2026, thereby enhancing resilience to external shocks. Alongside this, export performance remained steady, with cumulative (merchandise and services) exports estimated at US$ 860.09 Billion during April–March FY 2025-26, underscoring the economys ability to sustain trade momentum despite global uncertainties.
Together, these factors strengthened the economys ability to navigate geopolitical challenges while maintaining stability.
| US$ 698.49 Billion | US$ 94.53 Billion |
| Foreign Exchange Reserves | Gross FDI Inflows (FY 2025-26) |
Outlook
Looking ahead, Indias growth momentum is expected to remain strong, with real GDP projected to grow at 6.80-7.20% in FY 2026-27, supported by resilient domestic demand, alongside sustained public capital expenditure and continued momentum in manufacturing and services. Strengthening infrastructure, improving investment activity and ongoing policy support are expected to further reinforce economic expansion.
Building on these near-term drivers, the Viksit Bharat initiative outlines Indias long-term vision of becoming a developed economy by CY 2047, targeting a GDP of US$ 30-40 Trillion and per capita income of US$ 15,000-18,000, reflecting a strong structural growth trajectory. However, global trade uncertainties, geopolitical risks, and external volatility remain key headwinds, highlighting the need for continued reforms and macroeconomic stability to sustain growth momentum.
| 6.80% \u2013 7.20% | US$ 30 40 Trillion | US$ 15,000 18,000 |
| GDP Growth Outlook (FY 2026\u201327) | GDP Target (CY 2047) | Per Capita Income Target |
Source:
GROWTH DRIVERS OF THE INDIAN ECONOMY
Infrastructure Roads, Railways, Airports as an Economic Multiplier
Infrastructure remains central to Indias growth strategy, supported by sustained public capital expenditure, with the Centres capex rising by 92% between FY19 and FY22, increasing from 3.07 lakh crore to 5.92 lakh crore. This momentum has been sustained, with capital outlay budgeted to rise by nearly 89% to 11.21 lakh crore in FY26.
The Economic Survey highlights a strong multiplier effect, with every rupee of government spending generating GDP gains of 2.50-3.50 over the medium term. This scale of investment drives multiple rounds of economic activity by supporting demand, generating employment, improving competitiveness, and reinforcing growth momentum.
Source:
Economic Survey 2026: Infrastructure push deepens as public capex, reforms and private capital drive growth
Manufacturing Renaissance
Indias manufacturing growth is being driven by sustained policy support and global supply chain realignment. The Make in India initiative, expanded to 27 sectors, has strengthened investment, infrastructure and innovation, enhancing domestic manufacturing capabilities.
Building on this foundation, PLI schemes and reforms such as PM GatiShakti, the National Logistics Policy and
GST have improved cost competitiveness and supply chain efficiency, translating into investments exceeding 2.16 Lakhs Crore, incremental production of over 20.41 Lakhs Crore and employment generation of 14.39 Lakhs+ as of 31 December, 2025.
These structural gains are enabling India to benefit from the global China+1 strategy, particularly in sectors such as automobiles, supported by targeted incentives including the US$ 3 Billion PLI scheme for advanced and EV components, positioning India as a key manufacturing hub in global value chains.
| 20.41+ Lakhs Crore | 14.39 Lakhs+ Jobs |
| Incremental Production (as of 31 December, 2025) | Employment Generation (as of 31 December, 2025) |
| 2.16+ Lakhs Crore | |
| Investments Attracted (as of 31 December, 2025) |
Strengthening FDI Flows
Despite a subdued global investment environment, Indias net FDI inflows remain strong, at US$ 7.7 Billion during FY 2025–26 nearly 700% higher than in FY 2024-25. This momentum is supported by policy reforms, improved ease of doing business, and expanding free trade agreements, which have enhanced Indias global investment appeal. FDI continues to drive capital formation, technology transfer, and employment, reinforcing its role as a key engine of economic growth.
US$ $7.7 Billion
Net FDI inflows in FY 2025 26
Source: https://www.thehindu.com/business/Economy/net-foreign-investments-fell-to-117-billion-in-march-2026-as-fpi-outflowseclipsed-fdi-inflows/article71011126.ece
Rising Consumption and Strengthening Employment
Indias economic growth in FY 2025-26 was supported by robust domestic consumption and improving labour market conditions. Private Final Consumption Expenditure (PFCE) rose 7% during the year, accounting for 61.5% of GDP—the highest level since 2012—driven by rising incomes, stable employment and strengthening rural and urban demand. The countrys expanding middle-class population, estimated at over 31% of the total population, further reinforced consumption-led growth. Labour market conditions also strengthened considerably, with average employment reaching 57.40 crore persons in Q4 FY 2025–26, compared with 56.20 crore persons in Q2 FY 2025–26. Growth was supported by increased formalisation, particularly across manufacturing and organised sectors, resulting in job creation and income stability. The implementation of labour reforms gained momentum, with the consolidation of 29 labour laws into four Labour Codes aimed at simplifying compliance requirements, enhancing labour flexibility, standardising wage regulations and expanding social security coverage.
Additionally, labour market participation benefited integration, with over 31 crore workers registered on the e-Shram portal, strengthening workforce formalisation and supporting broader economic productivity.
7%
PFCE Growth
61.5%
PFCE Share in GDP
~31% of Population
Middle-Class Population
57.40 Crore
Total Employment (Q4 FY 2025-26)
31+ Crore Workers
e-Shram Registrations
29 Labour Laws Consolidated into 4 Labour Codes
Labour Law Reforms
AI-led Digital Transformation Creating New Productivity Frontiers
Indias economic growth is increasingly driven by AI-led digital transformation, with smaller, task-specific models lowering entry barriers and enabling wider adoption across firms and sectors. This is accelerating adoption in healthcare, agriculture and public administration, including low-resource settings, thereby expanding the reach of digital solutions. As a result, AI is enhancing productivity and operational efficiency through higher output, lower costs and improved access to goods and services, with a potential GDP contribution of US$ 500–600 Billion by CY 2035.
Source:
Press Release Page / Press Information Bureau, AI-for-Viksit-Bharat-the-opportunity-for-accelerated-economic-growth.pdf
LOGISTICS INDUSTRY IN INDIA
Current Industry Landscape in India
Indias freight and logistics industry is transitioning toward a more integrated, technology-enabled ecosystem, driven by e-commerce expansion, PLI-led manufacturing, and rising exports, with the market size estimated at US$ 476.51 Billion in CY 2031. Rising freight demand is accelerating infrastructure investment and network efficiency improvements across road and rail. In response, initiatives such as PM Gati Shakti are strengthening multimodal connectivity and reducing transit times by 12–15%, while dedicated freight corridors and axle-load liberalisation are improving long-haul cost economics. Concurrently, omnichannel and D2C models are driving micro-fulfilment networks, flexible warehousing, and integrated reverse logistics, accelerating adoption of real-time tracking, IoT, and data-driven routing to enhance visibility and asset utilisation. As a result, the industry is becoming increasingly differentiated by technology and service capabilities, with digital platforms improving capacity access and traditional 3PL players strengthening service differentiation through investments in automation, robotics, cold-chain, and predictive analytics.
Logistics as the Backbone of Indias Viksit Bharat Ambition
As Indias economy, valued at ~US$ 4.15 Trillion, advances towards its Viksit Bharat CY 2047 vision, the logistics sector is emerging as a critical backbone. Policy support under the Union Budget FY 2026–27, through interest-free loans for multimodal logistics parks, port upgrades and highway expansion—alongside large-scale projects such as Dedicated Freight Corridors and Bharatmala, is reducing transit times and improving freight efficiency. This progress is reflected in Indias improved ranking in the World Banks Logistics Performance Index to 38th in
CY 2023 from 44th in CY 2018, indicating strengthening logistics competitiveness.
| US$ 4.15 Trillion Economy | 38th Rank (CY 2023) |
| India\u2019s Economic Size | Logistics Performance Index (LPI) Rank |
Source: https://www.businessworld.in/article/navigating-india-s-growth-trajectory-logistics-as-the-backbone-for-viksit-bharat-589904
Modal composition
Indias transport mix remains road-dominated, with roadways accounting for 66% of freight traffic, followed by railways (22%), waterways (8%), pipelines (4%) and air (0.06%), indicating scope for diversification logistics costs.
Accordingly, policy focus on multimodal logistics—through investments in rail, inland waterways and integrated infrastructure—is expected to shift freight towards more cost-efficient and sustainable modes, enhancing overall logistics efficiency.
Modal Composition of Freight Transport in India:
| Mode of Transport | Share (%) |
| Roadways | 66% |
| Railways | 22% |
| Waterways | 8% |
| Pipelines | 4% |
| Air | 0.06% |
Source:
https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Transport.pdf
Milestone achievements
| Enhanced Connectivity | Expanding highways and expressways has streamlined transit networks, reducing transport bottlenecks and lowering total logistics overheads. |
| Logistics Digitisation (ULIP) | ULIP marks a major milestone, integrating 44 systems across 11 ministries, with 136 APIs and over 225 Crore transactions. |
| Dedicated Freight Corridors (DFC) | Eastern and Western DFC (2843km) reduce congestion, improve transit time and enhance reliability. |
| GST Implementation | Unified market enabled faster movement; truck speeds improved (225 km to 300+ km/day), reducing transit time by up to 30%. |
| Inland Waterways Expansion | Cargo reached 145.50 Million tonnes (FY 2024-25); operational waterways increased from 24 to 29, boosting multimodal logistics. |
| India Jumps to 38th on World Bank LPI | The World Bank reaffirmed India\u2019s growing stature in the logistics sector, with the country climbing to 38th place out of 139 nations in its 2023 Logistics Performance Index (LPI) |
| Accelerating Freight Infrastructure and Logistics Efficiency | Indian Railways loading 1,670 MT of freight in FY 2025-2026 \u2014 a 3.25% growth over the previous year. |
Source:
The Great Indian Logistics Transformation: How 11 Years Rewired a Nations Arteries / by Alan Shore / Medium, https://medium.com/@ shorealan201/the-great-indian-logistics-transformation-how-11-years-rewired-a-nations-arteries-67a00f4c6a5d, Press Release: Press
Information Bureau, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1985782®=3&lang=2, https://www.pib.gov.in/PressReleasePage. aspx?PRID=2112843®=3&lang=2#:~:text=Dedicated%20Freight%20Corridor%20(DFC)%20Project, train%20services%20have%20gone%20up.
GST Impact on Logistics: Benefits & New 2025 Updates - Shiprocket, Press Release: Press Information Bureau, GST played remarkable role in reducing logistics cost: Economic Survey - The Economic Times, Press Note Details: Press Information Bureau, 2025: Accelerating towards a Viksit Bharat - Logistics Outlook, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247768®=48&lang=2
Complexities and Challenges in the Indian Logistics Industry
Geopolitical disruptions:
Middle East tensions have increased logistics costs due to rerouting, higher insurance, and delays of 10–15 days, exposing dependence on critical routes such as the Strait of Hormuz, thereby raising freight costs, disrupting supply chains, and increasing overall logistics expenses for India.
Skewed modal mix:
Freight movement remains road-dominated (66%) versus rail (22%), with road transport being more expensive, leading to higher fuel consumption, congestion, and overall logistics costs.
High rail freight tariffs:
Cross-subsidisation keeps rail tariffs elevated, discouraging modal shift and increasing overall supply chain costs and inflationary pressures.
Infrastructure constraints:
Poor last-mile connectivity between industrial hubs, rural centres, and ports, along with weak multimodal integration, limits efficiency.
Rail network limitations:
Freight rail shares tracks with passenger trains, constraining speed, capacity, and reliability.
Rising fuel costs:
Increasing fuel prices, particularly Aviation Turbine Fuelwhichaccountsfor40%oftheairlineoperating expenses are driving higher transportation costs, often the burden is passed on to consumers.
Rising labor and workforce costs:
Acute shortages of skilled personnel, coupled with increasing driver and crew compensation, are driving up operational expenses.
Source:
RCCI flags rising logistics costs, seeks port waivers / Rajkot News - The
Times of India https://www.ndtvprofit.com/markets/iran-crisis-impact-how-surging-oil-prices-may-impact-india-inc-in-five-charts-11150746 Middle East conflict forces Indian exporters to reroute shipments, absorb higher costs - The Times of India Economic Survey 2025-26 recommends elimination of power cross-subsidies for railways, manufacturing within 5 years - The Times of India
Capabilities of Indian Logistics
35
Multimodal logistics parks in FY 2025-26
1,46,572 km
National Highways Network upto December FY 2025
5,364 km
High-Speed Expressways upto December FY 2025
Source:
Concession pact revamped for multi-modal logistics parks to boost ease of doing business - The Economic Times
Press Release Page / Press Information Bureau
1 Billion tonnes
Rail freight loading
7,051 km
Track renewal completed
599 km
Sectional speed upgraded to 130 kmph
4,069 km
Sectional speed upgraded to 110 kmph
Source:
Press Release Page / Press Information Bureau
164
Total operational airports (CY 2025)
8 Million tonnes/year
Total airport cargo handling capacity
13
Operational Greenfield
Source:
Press Release Page / Press Information Bureau Indias air cargo at the crossroads of global trade, AU4003_N6uGeL.pdf
Indian Logistics Industry Outlook
Indias freight and logistics industry is expected to maintain strong growth momentum, with the market projected to expand from US$ 315.89 Billion in CY 2026 to US$ 476.51 Billion by CY 2031, at a CAGR of 8.57%. Growth will be supported by rapid expansion of national highways, dedicated freight corridors, and multimodal logistics parks, improving connectivity and reducing transit times. Policy initiatives such as PM Gati Shakti are enhancing integrated multimodal transport planning and network efficiency. At the same time, increasing containerisation, rising penetration of organised logistics players, and continued development of warehousing and cold-chain infrastructure are strengthening supply chain
Growing adoption of digital freight platforms, route optimisation technologies, and fleet modernisation is further improving asset utilisation, operational efficiency, and logistics resilience.
Source:
India Freight and Logistics Market Size & Share 2031
GROWTH DRIVERS OF THE INDIAN LOGISTICS
Indias Manufacturing Push Becoming a Logistics Multiplier Investments Turning into Industrial Velocity
| 2+ Lakhs Crore | 18.70 Lakhs Crore |
| PLI-led investments unlocking manufacturing scale across 14 sectors | Incremental production creating stronger industrial and supply chain activity |
| India\u2019s Air Cargo Landscape | |
| 39.63 Lakh Tonnes | 100 Lakhs Tonnes by 2030 |
| Air Cargo Handled in FY 2025-26 \u2191 6.5% compared to FY 2024-25 | India\u2019s air cargo volumes projections |
| 6.20% YoY Growth | Green Aviation & ESG Integration |
| Air cargo movement | Aligned with the April 2026 Sustainable Aviation Fuel (SAF) framework |
Source: https://ficci.in/public/storage/sector/Report/23063/jMiKX1w7pX1HKBjiU1nVLYvF9v4aqFDNHrKgLWfZ.pdf , https://www.business-standard.com/content/press-releases-ani/india-poised-to-become-global-air-cargo-hub-acfi-ascela-insights-chart-roadmap-for-2030-in-its-knowledge-paper-125071200715_1.html, https://ficci.in/public/storage/sector/Report/23063/jMiKX1w7pX1HKBjiU1nVLYvF9v4aqFDNHrKgLWfZ.pdf , https://www.business-standard.com/content/press-releases-ani/india-poised-to-become-global-air-cargo-hub-acfi-ascela-insights-chart-roadmap-for-2030-in-its-knowledge-paper-125071200715_1.html
Infrastructure Creating Faster Supply Chains
Dedicated Freight Corridors
Enabling higher cargo capacity, reduced transit timelines and seamless freight movement
Integrated Logistics Networks
Strengthening multimodal connectivity between manufacturing hubs and consumption centres
Capacity Expansion
Supporting rising industrial throughput and large-scale cargo handling requirements
Warehousing Emerging as the Next Growth Engine
| 36.90 Million sq. ft. | 16% Growth |
| Warehouse absorption in CY 2025 | Demand surge led by manufacturing expansion and distribution network optimisation |
Key Demand Drivers
Large-format industrial warehousing Technology-enabled logistics parks Faster inventory turnaround requirements
Expansion of organised supply chain infrastructure
Source:
Press Release Page / Press Information Bureau, Industrial & warehousing leasing hits record high in 2025 driven by 3PL, engineering & e-commerce demand - The Economic Times, Indian Railway records 8.5% growth in freight loading during August 2025 - The Economic Times, JNPA shatters all-time records, surpasses 7.33 Million TEUs in FY 2025-26 - India Shipping News
Policy-Led Transformation Accelerating Indias Logistics Ecosystem Building the Backbone of National Connectivity
| PM GatiShakti | Bharatmala Programme |
| Creating an integrated infrastructure grid to synchronise road, rail, port and air connectivity | 21,700+ km constructed, strengthening freight corridors and reducing transit bottlenecks |
Freight Infrastructure Expanding at Scale
100% Commissioned
Dedicated Freight Corridor network operationalised across 2,843 km
Impact on Logistics Efficiency
Faster cargo evacuation Higher rail freight capacity Reduced turnaround time
Improved multimodal freight integration
Digital Integration Powering Smarter Logistics
| National Logistics Policy | Unified Logistics Interface Platform (ULIP) |
| Driving standardisation, efficiency and cost optimisation across the logistics value chain | 45+ systems integrated 300 Crore API transactions enabled |
Enabling a More Connected Ecosystem
Real-time visibility across logistics network Seamless data exchange between stakeholders Faster documentation and approvals Improved supply chain coordination and transparency
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2112843®=3&lang=2#:~:text=Dedicated%20Freight%20Corridor%20(DFC)%20Pro-ject,train%20services%20have%20gone%20up, I ndias mega highway development programme: 21,783 km length of Bharatmala projects constructed, says Govt - The Infra Post,Press Release Page / Press Information Bureau
Indian Railways Emerging as the Nations Freight Engine Expansion Freight Momentum
| 1 Billion Tonnes | 3.25% YoY Growth |
| Freight loading achieved in FY 2025-26 | Increase in freight movement driven by core industrial sectors |
Dedicated Freight Corridors Reshaping Rail Logistics Unlocking High-Capacity Freight Movement
Faster and more efficient cargo transportation
Higher carrying capacity across key industrial routes Reduced congestion on conventional railway lines
Improved transit reliability and turnaround efficiency
Creating a More Efficient Rail Network
Dedicated Freight Corridors are not only enhancing freight movement but also freeing up capacity on existing passenger routes, resulting in stronger network optimisation across the railway ecosystem.
Cost Efficiency Strengthening Rail Competitiveness
1.96 per tonne-km
Average rail freight cost positioning rail as a highly economical transport mode
Driving Structural Advantages
Lower logistics costs compared to road transport Scalable freight movement for bulk commodities
Greater fuel efficiency and operational sustainability Enhanced suitability for long-haul industrial cargo movement
Railways Becoming the Backbone of Indias Freight Ecosystem
With rising freight volumes, expanding corridor infrastructure and superior cost economics, Indian Railways is steadily strengthening its role as a reliable, scalable and future-ready freight backbone supporting Indias industrial and logistics transformation.
Intelligent Technologies Reshaping the Future of Logistics
A New Era of Smart Logistics Operations
Indias logistics sector is witnessing a rapid technology-led transformation as AI, ML, IoT and Robotics become integral to modern supply chain operations. The growing need for faster deliveries, operational precision and real-time visibility is accelerating adoption across logistics networks.
Technology Becoming the Core of Logistics Efficiency
| Artificial Intelligence (AI) | Machine Learning (ML) |
| Enabling predictive planning, route optimisation and intelligent decision-making across supply chains | Improving demand forecasting, inventory accuracy and operational responsiveness through data-driven insights |
| Internet of Things (IoT) | Robotics & Automation |
| Delivering real-time tracking, asset monitoring and end-to-end shipment visibility across logistics ecosystems | Enhancing warehouse productivity, cargo handling speed and order fulfilment efficiency |
Source:
DPIIT Report SEP 2025,
Indian Railways reports record 1.67 billion tonne freight loading in FY26 / IBEF
Digitisation Driving Smarter Supply Chains
Operational Improvements Enabled Through Technology
Faster turnaround and processing timelines
Improved inventory visibility and management accuracy
Enhanced fleet and warehouse utilisation
Better coordination across integrated logistics networks
Reduced operational inefficiencies and manual intervention
Building More Connected and Responsive Logistics Networks
As supply chains become increasingly complex and time-sensitive, digital technologies are enabling logistics operators to create more agile, transparent and synchronised operations capable of handling larger cargo volumes with greater efficiency
Union Budget Tax Reforms Strengthening Logistics
Competitiveness
Fiscal Measures Driving Sectoral Efficiency
The Union Budgets focus on GST rationalisation and green logistics incentives is creating a more cost-efficient operating for the logistics sector while accelerating the transition towards sustainable transportation solutions.
GST Rationalisation Lowering Transportation Costs
28% ? 18%
Commercial Vehicle GST Reduced
Impact on the Logistics Ecosystem
Lower upfront vehicle acquisition costs
Improved affordability for fleet expansion Enhanced capital allocation efficiency Faster replacement of ageing fleets
Duty Reductions Supporting Green Logistics Adoption Policy Measures Encouraging
Cleaner transportation technologies
Fuel-efficient logistics operations Sustainable fleet
Wider adoption of environmentally responsible mobility solutions
Source:
Press Release Page / Press Information Bureau
Improving Cost Economics Across Logistics Operations
Structural Benefits for
Reduced operating and transportation expenses
Better asset utilisation and fleet productivity
Increased accessibility for logistics operators Enhanced competitiveness across supply chains
Replacing Fragmented Processes with Seamless
Digital Integration
Bharat Trade Net Enables
Paperless trade documentation
Real-time data exchange across agencies
Integrated financing and transaction support
Faster and more secure trade processing
Creating a More Connected Trade Ecosystem
BTN brings together exporters, logistics providers, financial efficientcy international stakeholders within a unified digital framework.
National Geospatial Mission Powering Smarter Infrastructure Planning Data-Driven Planning Becoming Central to Infrastructure Development
Announced in the Union Budget 2025–26, the National Geospatial Mission aims to strengthen infrastructure planning through advanced geospatial technologies, enabling more accurate, efficient and real-time decision-making across sectors.
Technology Enabling Intelligent Infrastructure
Design
Core Geospatial Capabilities
Advanced mapping and spatial analytics Real-time positioning systems Data-driven infrastructure monitoring Integrated digital planning frameworks
Unified Geospatial Interface (UGI)
Creating a connected ecosystem for seamless geospatial data access, processing and coordination across infrastructure networks.
Enhancing Logistics Connectivity Through Smarter
Planning
Enabling Operational Improvements
Sector
Better route optimisation across transport corridors
More efficient network and infrastructure planning Improved placement of logistics and warehousing assets Stronger coordination between multimodal transport systems
Improving Efficiency Across Logistics Networks Strategic Benefits for the Sector
Reduced operational inefficiencies
Enhanced cargo movement planning Greater scalability of logistics infrastructure Improved visibility across transportation networks Stronger long-term infrastructure utilisation institutions, customs authorities and Faster identification of connectivity gaps and bottlenecks
Rural Consumption & MSME Expansion Fueling Logistics Demand Consumption Growth Expanding Beyond Urban India
Nearly 80% of rural households
Reported higher consumption levels as per NABARDs Rural Economic Conditions and Sentiments Survey (RECSS)
Rural Demand Emerging as a Key Growth Driver
Rising household spending supporting higher goods movement Expanding consumption across semi-urban and rural markets Greater demand for faster and wider product distribution Increasing penetration of organised supply chains into hinterland regions
MSMEs Strengthening Indias Production Ecosystem
| 31.10% | 48.58% |
| Contribution to GDP | Share in Exports |
| 32.82+ Crore Employment Generated | |
| Economic Contribution of MSMEs |
Logistics Networks Scaling with Demand
Expansion
Rising Consumption + Growing Production = Higher Logistics Intensity
Sector-Wise Implications
Higher shipment and freight volumes Increased last-mile delivery requirements Expansion of warehousing and distribution networks Greater connectivity between rural markets and industrial hubs Rising demand for integrated logistics solutions
Source:
Press Release Page / Press Information Bureau, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2228306&utm,
Press Release Page / Press Information Bureau
Multi-Modal Logistics Parks Redefining Cargo Movement
Building Integrated Logistics Ecosystems
Indias logistics infrastructure is evolving from fragmented transport networks to seamlessly connected, multi-modal logistics ecosystems integrating road, rail, air and maritime connectivity within a single hub.
Mega Logistics Parks Taking Shape Across India Jogighopa, Assam
Emerging as a strategic gateway for NorthEast India with multimodal cargo integration capabilities
11.11 Billion Investment
113 Hectares Development Area ( Pithampur Logistics Park)
14.24 Billion Investment 181 Acres of Integrated Logistics
Infrastructure (Chennai Mappedu Logistics Park
Source: https://niti.gov.in/sites/default/files/2026-02/Scenarios-Towards-Viksit-Bharat-and-Net-Zero-Sectoral-Insights-Transport.pdf https://indianinfrastructure.com/2026/02/01/seamless-operations-rise-of-multimodal-logistics-parks-and-hubs/
GOVERNMENT INITIATIVES
RELIEF Scheme
Objective
To support exporters affected by disruptions arising from the West Asia conflict and ensure continuity of trade flows.
Execution Enablers
497 Crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme launched on 19 March, 2026
Credit insurance cover provided for both stranded shipments and planned exports to the Gulf region
Insurance premia maintained at pre-conflict levels to reduce cost pressures, with a strong focus on MSMEs
Outcome
Reduced financial and operational stress for exporters, improved export certainty, and strengthened trade continuity amid geopolitical disruptions.
497 Crore
Scheme Size
Source:
Government announces 497 crore RELIEF scheme for exporters impacted by West Asian crisis - The Hindu
Jalvahak (Cargo Promotion) Scheme
Objective
To promote a modal shift of cargo transportation towards inland waterways through cost incentives and expanded scheduled services.
Execution Enablers
Launched on 15 December, 2024 across key routes including NW-1, NW-2, and NW-16 via the Indo-Bangladesh Protocol (IBP) corridor Reimbursement of up to 35% of actual operating costs for waterway cargo transportation
Proposed expansion to Kerala waterways, as highlighted during the 3rd IWDC Conference
Outcome
Expected modal shift of nearly 800 Million tonne-kilometres of cargo to inland waterways, representing ~17% of current cargo movement on National Waterways.
Source:
Press Release Page / Press Information Bureau
PM Gati Shakti NMP
Objective
To create an integrated multimodal infrastructure ecosystem that enhances logistics efficiency, improves freight connectivity and reduces transportation costs across India.
Execution Enablers
Launched in October 2021 as a GIS-based platform integrating 57 Central Ministries/Departments and all States/UTs to enable coordinated infrastructure planning Incorporates 1,700+ data layers to support multimodal logistics planning, corridor development and faster project execution
Evaluated 352 infrastructure projects worth 16.10 Lakh Crore, with 201 projects sanctioned and 167 under implementation Focuses on seamless integration of roads, railways, ports, airports and logistics infrastructure to strengthen freight connectivity
| 352 Projects | 16.10 Lakhs Crore |
| Projects Evaluated | Investment Value |
| 1,700+ Data Layers | 167 Projects |
| Data Layers (GIS Platform) | Projects Under Implementation |
Source: https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025816613701.pdf
Press Release Page / Press Information Bureau
Goods and Services Tax
Objective
To create a unified indirect tax structure and enable seamless movement of goods across states.
Execution Enablers
Implemented in 2017 with the elimination of interstate checkpoints and rationalisation of indirect taxes
Reduced transit delays and improved freight movement efficiency across the logistics network
Enhanced asset utilisation and operational productivity within the transportation and logistics sector
Source:
https://www.pib.gov.in/PressNoteDetails aspx?NoteId=155038&ModuleId=3®=3&lang=2#:~:text=Key%20 Takeaways,and%20transparency%20across%20supply%20chains.
Policy Objective
Digitalise goods movement, improve GST compliance, and reduce transit delays.
Execution Enablers
Mandatory digital documentation for consignments above 50,000 Faster interstate movement through digital verification
Enhanced transparency and tax compliance
Source: https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=155038&ModuleId=3®=3&lang=2#:~:text=Key%20Takeaways,and%20 transparency%20across%20supply%20chains.
National Logistics Policy
Objective
To build a seamless and efficient logistics ecosystem through cost reduction, digital integration, and operational efficiency enhancement.
Execution Enablers
Introduced in September 2022 alongside PM Gati Shakti to strengthen integrated logistics planning to track 75+ Million containers across 101 ICDs through real-time EXIM cargo monitoring
| 75 Million Containers Tracked | 101 ICDs Covered |
| Logistics Data Bank (LDB) | Inland Container Depots |
Source:
·https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2167224&utm
· https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025816613701.pdf
Unified Logistics Interface Platform (ULIP)
Policy Objective
To create a unified digital logistics ecosystem through seamless real-time data exchange and integrated supply chain visibility.
Execution Enablers
Developed under the National Logistics Policy by integrating fragmented government systems and private stakeholders onto a single digital interface to integrate 44 systems across 11 ministries with 136+
APIs and access to 2,000+ data fields . This enables real-time shipment tracking, ETA visibility, and supply chain planning capabilities By integrating over 45 digital systems, ULIP enables seamless digital coordination across the logistics network, having surpassed 225 Crore transactions in December 2025 before climbing past the 300 milestone by the April 2026.
| 300+ Crore | 137+ APIs |
| Transactions | APIs Offered |
| 100 Crore Transactions (March 2025) | 45 Systems |
| Milestone Achievement | Systems Integrated |
Source:
Final Logistics-Indias Growth Engine / Press Release: Press Information Bureau
LEADS Framework
Policy Objective
To benchmark and improve logistics performance across states through data-driven evaluation and corridor- level monitoring.
Execution Enablers
Annual assessment framework by the Ministry of Commerce & Industry covering infrastructure, services, regulatory environment, and sustainability parameters Combines industry perception with 32.50% weightage assigned to objective data for performance evaluation
Corridor-level monitoring of metrics such as journey time, truck speeds, and transit delays to identify logistics bottlenecks
Source:
https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/aug/doc2025816613701.pdf https://www.pib.gov.in/PressReleasePage.aspx?PRID=2195125
Strengthening Indias Multimodal Logistics Backbone
Through flagship programmes such as Bharatmala Pariyojana and Sagarmala, the Government is creating an integrated logistics ecosystem that supports faster freight movement, stronger trade competitiveness and seamless multimodal transportation.
Key Enablers
Road Infrastructure Expansion Bharatmala Pariyojana
Approved in 2017 under Phase-I with a planned development of 34,800 km of national highways 26,425 km of highways awarded and 21,783 km constructed as of December 2025 National highway network expanded from 132,499 km in 2019 to 146,560 km
Freight movement speeds improved from 30 35 km/h to nearly 50 km/h
Maritime Infrastructure Development – Sagarmala Programme
Focused on port-led development, coastal connectivity and logistics efficiency 5 of 6 coastal shipping projects completed, representing investments of 320.50 Crore Added approximately 6.50 Million Tonnes of cargo handling capacity 17 of 24 port modernisation projects completed with investments of 852.40 Crore
Source:
Press Release Page / Press Information Bureau, AU1025_Gq5qoh.pdf
Dedicated Freight Corridors and Multi-Modal Logistics Parks
Objective
To strengthen Indias freight transportation ecosystem through dedicated rail infrastructure and integrated logistics hubs, enabling faster cargo movement, improved multimodal connectivity and lower logistics costs.
Execution Enablers
Development of the 1,337 km Eastern Dedicated Freight Corridor and 1,506 km Western Dedicated Freight Corridor to enhance rail freight efficiency Segregation of freight traffic from conventional rail networks, enabling faster, more reliable cargo movement and increased network capacity Operation of approximately 403 freight trains daily as of November 2025, demonstrating strong corridor utilisation Planned development of 35 Multi-Modal Logistics Parks (MMLPs) under the Bharatmala Programme with an estimated investment of 46,000 Crore Development of 15 priority logistics parks involving investments of approximately 22,000 Crore Creation of integrated hubs that facilitate cargo aggregation and seamless road-rail connectivity
Outcome
Enhanced freight efficiency, reduced transit times, improved cargo handling capabilities and lower logistics costs. Together, these initiatives are strengthening Indias multimodal logistics infrastructure, contributing to a record 1 billion tonnes of freight loading in FY 2025 26 and supporting a more competitive and efficient supply chain ecosystem.
Source:
Year End Review 2025 Ministry of Road Transport & Highways - India Shipping News
Modified UDAN scheme
Objective
To enhance affordable regional air connectivity and improve access to underserved and unserved regions across the country.
Execution Enablers
Outlay of 28,840 Crore allocated for FY 2026 27 to FY 2035 36
Development of 100 airports and 200 helipads across Tier II, and Tier III Strengthening last-mile air connectivity to improve access to trade, tourism, healthcare, and emergency services
Outcome
Expanded regional connectivity, improved accessibility to remote areas, enhanced mobility and economic inclusion, and support for balanced regional development.
| 28,840 Crore | 100 Airports |
| Scheme Outlay | Airports to be Developed |
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2245096®=3&lang=1
Green logistics support
Policy Objective
To improve the affordability and adoption of clean logistics technologies through tax rationalisation and duty exemptions.
Execution Enablers
GST on hydrogen fuel-cell vehicles reduced from 12% to 5% and EVs maintained at 5% while on non-lithium batteries GST reduced from 28% to 18%, while lithium-ion batteries remain at 18% Excise duty relief provided on compressed biogas (CBG) Customs duty exemptions introduced on battery manufacturing equipment to support domestic clean technology adoption
Outcome
Lower adoption costs for clean mobility solutions, accelerated transition towards sustainable logistics, and strengthened development of green transportation infrastructure.
| 5% | 18% |
| Hydrogen Vehicles GST | Non-Lithium Battery GST |
| 5% GST | 18% GST |
| EV GST | Lithium-ion Battery GST |
Source:
GST Council cuts tax on renewable energy equipment to 5 percent / DD News
TECHNOLOGICAL LANDSCAPE OF LOGISTICS
AI & ML: Driving Smarter Logistics Operations
Artificial Intelligence (AI) and Machine Learning (ML) are transforming decision-making and operational optimisation. Supported by the IndiaAI Mission and expanding computing infrastructure, these technologies help logistics companies optimise routes, improve demand forecasting, automate planning processes, and enhance overall operational efficiency.
Internet of Things (IoT)
The Internet of Things (IoT) is enhancing logistics visibility through connected devices such as GPS trackers and sensors. By enabling real-time monitoring of shipment location and condition, IoT improves transparency, supports proactive issue resolution, and strengthens customer communication and service reliability.
Automated Sorting Centres
Automated sorting centres are improving logistics efficiency through technologies such as barcode scanning, artificial intelligence, and robotics. These systems increase sorting accuracy, reduce manual intervention, accelerate shipment processing, and minimise operational errors, resulting in faster and more reliable deliveries.
Blockchain in Logistics
Blockchain is enabling secure, transparent, and tamper-proof documentation across logistics networks. By recording transactions on a shared digital ledger accessible to authorised stakeholders, blockchain enhances traceability, reduces fraud and documentation errors, and improves coordination across supply chains.
Cloud Computing & ERP Systems
Cloud computing and ERP systems are providing logistics companies with integrated, real-time visibility across fleet, warehouse, and inventory operations.
Their scalable architecture improves coordination, streamlines processes, enhances operational agility, and supports cost-
Digital Freight Marketplaces
Digital freight marketplaces are transforming freight movement by connecting shippers and carriers through real-time digital platforms. Using AI and analytics for load matching and capacity optimisation, these platforms improve utilisation, reduce empty miles, accelerate bookings, and enhance operational transparency.
GPS Fleet Management & Telematics
GPS fleet management and telematics technologies enable real-time vehicle tracking and performance monitoring. By providing insights into vehicle location, fuel consumption, and driver behaviour, they support route optimisation, reduce delays and downtime, and improve overall fleet efficiency.
Cybersecurity in Logistics
As logistics operations become increasingly digitalised, cybersecurity has become essential for protecting sensitive data and critical infrastructure. Robust cybersecurity frameworks help to prevent operational disruptions, financial losses, and reputational damage while ensuring business continuity and stakeholder trust.
Robotics & AGVs
Robotics and Automated Guided Vehicles (AGVs) are revolutionising warehouse operations by enabling automated material movement, picking, and inventory replenishment. Operating continuously with high precision, these systems improve productivity, reduce labour dependency, minimise handling errors, and enhance warehouse efficiency.
Source:
How Automatic Guided Vehicle Are Revolutionizing Warehouse Operations / Bluepath Robotics, Artificial Intelligence in Logistics: Optimizing Operations and Demand Forecasting - Technology Innovators, Cybersecurity in Logistics: Protecting Data in a Digital Supply Chain, https://reach24.net/resources/blogs/how-gps-fleet-management-is-changing-the-way-logistics-works/, Digital Freight Matching Market Size / Industry Report, 2030, https://www.dexciss.io/blog/educational-6/cloud-based-logistics-erp-why-modern-logistics-companies-are-moving-to-the-cloud-281, https://dhl-freight-connections.com/en/solutions/blockchain-in-logistics-security-and-transparency-for-the-supply-chain/, How Warehousing Sorting Systems Revolutionize Logistics / Food Logistics, How IoT Is revolutionizing the Logistics Industry / Exaud
How TCI Express is Ready to Seize Indias Logistics Opportunity
Indias logistics sector is being reshaped by rapid infrastructure development, manufacturing expansion, increasing formalisation of MSMEs, growing multimodal connectivity and the adoption of digital technologies.
Infrastructure Scale Driving Nationwide Reach With 1000+ company-owned branches, 28 sorting centres, coverage across 60,000+ locations and
29,000+ pin codes, TCI Express is well-positioned to benefit from Indias expanding logistics infrastructure.
Its extensive network enables faster deliveries, deeper market penetration and enhanced customer responsiveness.
Multimodal Capabilities Enhancing Customer
Value
The Companys diversified portfolio spanning Surface, Rail, Air, International Air, C2C and E-Commerce
Express services enables customers to optimise speed, cost and reliability. This multimodal capability strengthens TCI Express ability to serve diverse logistics requirements across industries.
Deep MSME and Manufacturing Connect
A strong presence across MSMEs and key industrial sectors, including pharmaceuticals, engineering, automotive, textiles and consumer durables, enables
TCI Express to capitalise on Indias manufacturing growth and increasing formalisation of supply chains.
Automation Enhancing Operational Efficiency
The automated sorting centres at Gurugram and Pune, with a combined processing capacity of 26,000 parcels per hour , improve throughput, reduce turnaround times and enhance shipment accuracy, creating a scalable platform for future growth.
Technology Powering Intelligent Logistics
Through AI and ML-driven route optimisation, ERP integration, API connectivity and real-time shipment tracking, TCI Express is strengthening operational visibility, improving customer experience and driving greater efficiency across the logistics value chain.
Sustainability Supporting Long-Term Growth
Investments in renewable energy, green infrastructure and energy-efficient operations reinforce the Companys commitment to responsible growth while enhancing operational resilience and environmental performance.
A Platform Built for Sustainable Expansion
The combination of infrastructure scale, multimodal expertise, MSME penetration, automation, technology and sustainability positions TCI Express to capture emerging opportunities and create long-term value in Indias evolving logistics landscape.
EXPRESS LOGISTICS IN INDIA
Express logistics as the highest-growth segment within Indian logistics
Indias express logistics industry has evolved into a high-growth, time-sensitive segment within the broader logistics ecosystem, as changing consumption patterns and rapid e-commerce expansion increase the need for faster and more reliable deliveries. The industry has scaled from US$ 3 Billion in FY 2016–17 to US$ 9 Billion in
FY 2024 25, reflecting a CAGR of 12-15%, with growth being driven by increasing demand across Surface Express and Domestic & International Air Express services for time-definite shipments, supported by the expanding role of Rail Express for cost-efficient bulk movement, along with rising volumes in E-commerce Express driven by last-mile delivery requirements. This demand shift towards time-sensitive fulfilment is reducing the relative importance of cost optimisation and, in turn, increasing the premium on speed, reliability, and network efficiency, thereby positioning express logistics as the fastest-growing segment within Indias logistics sector.
| US$ 3 Billion to US$ 9 Billion | ~12-15% CAGR |
| Market Growth (FY 2016-17 to FY 2024-25) | Growth Rate |
Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
Role in enabling just-in-time manufacturing and pharmaceutical distribution
Manufacturing Industry
The core Manufacturing Market is scaling to US$ 2.47 Trillion by CY 2031 from US$ 1.63 Trillion in CY 2025 at a 7.26% CAGR. Advanced manufacturing techniques and a reduction in working capital cycles from 90 days to below 45 days have heavily accelerated production timelines. Rising FDI under the China + 1 strategy alongside extensive PLI 2.0 investments are propelling high-growth segments like electronics, batteries, and green hydrogen. Geographically, while West India remains the dominant hub, South India is witnessing surging demand driven by expanding aerospace, EV, and semiconductor clusters. This high-velocity environment directly fuels the express delivery industry by demanding time-critical logistics to prevent production bottlenecks.
Pharmaceutical Industry
The pharmaceutical market is projected to reach US$ 79.74 Billion by CY 2031 (up from US$ 57.61 Billion in CY 2025) at a 5.74% CAGR. The sectors extreme reliance on speed is evident as B2B industries drive over 70% of international express volumes, while pharma alone constitutes ~5–10% of domestic B2B shipments. This critical dependence serves as a primary growth anchor for the specialised express delivery and cold-chain industry.
Strategic Growth Sectors
Rapid milestones across IT Hardware (scaling to US$ 31.39 Billion by CY 2031 via over 1.61 Lakhs Crore in PLI 2.0 investments) and Consumer Durables (~11% CAGR up to FY 2026–27) have drastically increased high-frequency component movements. Concurrently, Engineering Goods exports exceeded US$ 100 Billion (April–January FY 2025–26) and the Solar/EV sector hit a milestone with 50% non-fossil installed capacity. Together, these fast-moving sectors drive massive volume and continuous demand for technology-enabled, just-in-time express delivery solutions.
Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
GST and formalisation as structural tailwinds for organised express players
The Indian express logistics industry has undergone a structural transformation over recent years, supported by policy-led reforms such as GST, the e-way bill, and the Express Cargo Clearance System (ECCS). GST has been a key enabler, reshaping Indias indirect tax landscape by driving formalisation and digitalisation, while also facilitating the creation of a unified national market and improving ease of doing business. The increasing adoption of e-invoicing and data-driven compliance mechanisms has further strengthened transparency and accountability across supply chains. Collectively, these developments are accelerating the shift toward organised, technology-enabled players, as stringent compliance limits unorganised operations, reinforcing their structural advantage in a market focused on speed, reliability, and visibility.
Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
GST at Eight from Reform to Refinement
Surface express as the dominant and the most scalable mode
Surface express has emerged as the backbone of Indias express logistics sector, accounting for 82% of the domestic market, compared to 17% for air and ~1% for rail. At an overall level, road-based movement contributes ~55–60% of total express volumes by value, with its share increasing by ~5% over the past five years.
This dominance is supported by improved road infrastructure and connectivity, which have enhanced network reach and operational efficiency. As a result, surface express, with its extensive coverage and ability to handle large volumes, stands out as the most scalable and indispensable mode in Indias logistics network.
82%
Surface Express Share
17%
Air Express Share
~1%
Rail Express Share
Source:
https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
Air express catering to high-value, time-critical shipments
Air express plays a critical role in handling premium, time-sensitive shipments across sectors such as automotive, electronics, pharmaceuticals, and e-commerce. Rising demand for same-day and next-day deliveries is driving willingness to pay for speed and reliability, enabling faster shipment cycles and improved efficiency.
Despite higher costs compared to road, it remains the preferred mode for urgent, high-value consignments. Expanding airport and cargo infrastructure across Tier II and Tier III cities is further supporting the growth of this segment.
Source:
https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
Rail express bridging the speed-cost gap using Indias freight corridor network
Rail express, as an emerging time-bound logistics mode, is gaining importance within Indias logistics ecosystem, supported by government-led initiatives such as dedicated freight corridors (DFCs), improvements in rolling stock, and station development, which are enhancing capacity, transit speed, and efficiency. Additionally, services like the Rail Post Gati Shakti Express Cargo Service offer time-tabled runs, end-to-end logistics, and improved reliability, making rail increasingly suitable for faster deliveries. With growing cost competitiveness for specific routes, rail express is well positioned to balance speed and cost, bridging the gap between faster but expensive air transport and slower but economical road transport.
Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
Outlook: Express Logistics Industry
Indias express logistics industry is evolving into a core B2B supply chain enabler, driven by increasing demand for just-in-time manufacturing, faster inter-firm distribution, and inventory optimisation. With a significant share of volumes linked to industries such as pharmaceuticals, automotive and textiles, shipment intensity is expected to rise, positioning the express logistics industry to reach ~US$ 22 Billion by FY 2029–30. Growth is supported by expanding multimodal infrastructure, improving transit efficiency and cost speed optimisation, while asset-light models and digital technologies are enhancing scalability, visibility, and service reliability. Policy-led reforms such as GST and PM Gati Shakti are further accelerating formalisation and network integration, strengthening the role of organised players. In balance, the sector is well-positioned for sustained, efficiency-led growth, anchored in B2B demand dynamics.
Source: https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
TCI Express is Positioned to Capture Emerging Logistics Opportunities
With Indias Express logistics sector witnessing increasing demand for multimodal, technology-enabled and specialised transportation solutions, TCI Express is well-positioned to capitalise on these growth opportunities through its integrated service portfolio, extensive network and advanced infrastructure. The Company continues to strengthen its capabilities across key logistics segments: Surface Express: Extensive nationwide network covering 60,000+ locations and 29,000+ pin codes, enabling reliable and time-definite deliveries
Air Express: Connectivity through 150+ air gateways, supporting time-critical shipments across high-value sectors
Rail Express: Leveraging dedicated rail infrastructure to provide cost-efficient, sustainable and long-haul freight solutions Cold Chain Express: Catering to the growing pharmaceutical and healthcare sectors through temperature-controlled logistics and specialised handling capabilities.
Supported by automated sorting centres, AI-driven operations, real-time visibility and a debt-free balance sheet,
TCI Express remains well-equipped to capture Indias next wave of logistics growth while delivering speed, precision and reliability across every direction of its business
INDUSTRY DIVISIONS FOR EXPRESS LOGISTICS The Express Delivery Industry provides time-definite, reliable, and secure transportation shipments through integrated road, rail, air and multimodal networks, enabling faster supply chains and efficient business operations. The current size
Indian express industry market was valued at USD ~ 9 billion in FY 2024-25.
Surface Express
Surface Express remains the backbone of Indias express logistics industry, accounting for approximately 82% of domestic volumes. Its extensive road-based network enables cost-efficient movement of high-volume shipments across regions, making it the preferred mode for B2B logistics. Continued capital investments in road infrastructure are enhancing connectivity, reliability and delivery efficiency.
Source:
https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/ express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
Air Express
Air Express serves time-critical and high-value shipments across sectors such as pharmaceuticals, electronics and automotive. Its ability to support same-day and next-day deliveries enhances supply chain responsiveness and business agility. Expanding airport and cargo infrastructure is further strengthening air logistics capabilities across India.
Rail B2B Express
Rail Express offers an optimal balance between cost and speed for long- distance freight movement. Supported by Dedicated Freight Corridors and ongoing railway modernisation, the segment is improving transit efficiency, reliability and sustainability. It is increasingly becoming a preferred mode for large-scale industrial cargo transportation.
| Express | Surface Express 82% |
| Logistics | |
| Market Share | Air Express 17% |
| Breakdown | Rail B2B Express 1% |
International Air Express
The International Air Express segment serves as a critical, of time-definite pipeline connecting cross-border trade lanes, commanding a substantial 30% share of Indias total express market value. Operating of exclusively via airways, this high-value corridor handles time-critical shipments for sectors such as pharmaceuticals, advanced electronics, automotive components, and global retail. Driven heavily by the digital economy, cross-border e-commerce has emerged as the primary catalyst for this sector, accounting for 70% of all international shipments. Backed by automated regulatory infrastructure like the Express Cargo Clearance System (ECCS) across major mega-hubs like Delhi, Mumbai, Bengaluru, and Chennai, it reduces international customs processing from days down to just a few hours
US$ 2.5–2.7 Billion
Projected Market Size (FY 2024–25)
Source :
https://assets.kpmg.com/content/dam/kpmgsites/in/pdf/2025/08/ express-industry-in-india-powering-indias-economy-connecting-businesses-and-markets.pdf
E-Commerce
E-Commerce is emerging as a key enabler of B2B supply chains, supporting faster inventory replenishment and efficient distribution networks.
The segment is expected to grow from US$ 7.25 Billion in CY 2026 to US$ 11.14 Billion by CY 2031. Increasing digitalisation and technology-led fulfilment are driving demand for reliable and time-definite logistics solutions.
US$ 7.25 Billion
Projected Market Size (CY 2026)
Source:
India E-commerce Logistics Market - Size, Share, Growth & Trends
Analysis
PARTNERING WITH KEY INDUSTRIES
Solar and Electric Vehicles (EV)
| Particulars | Details |
| Industry | Solar and Electric Vehicles (EV) |
| Key Growth Drivers | Policy support; Rising clean energy adoption; Increasing EV penetration |
| Renewable Energy Milestone (CY 2025) | 50% of installed power capacity from non-fossil fuel sources |
| Total Renewable Energy Capacity | Exceeded 250 GW |
| Installed Solar Capacity | 132.85 GW |
| EV Sales (FY 2025\u201326) | 24.50 Lakhs units |
| EV Sales Growth | 25% YoY |
| Key EV Adoption Segments | Two-wheelers; Three-wheelers; Passenger vehicles |
| Supply Chain Impact | Rising movement of solar modules, battery systems, and related components |
| Logistics Requirements | Efficient and time-sensitive logistics operations |
| Operational Needs | Coordinated multi-location execution and alignment with project timelines |
| Industry Outlook | Accelerated clean energy transition expected to strengthen demand for specialised logistics and integrated supply chain solutions |
Press Release: Press Information Bureau
India EV sales hit record 24.5 lakh in FY26; cars jump 84%, two- and three-wheelers lead volumes - The Times of India
Manufacturing Market
| Particulars | Details |
| Market Size (CY 2025) | US$ 1.63 Trillion |
| Expected Market Size (CY 2031) | US$ 2.47 Trillion |
| CAGR (CY 2025\u20132031) | 7.26% |
| Key Growth Drivers | PLI 2.0 investments; Rising FDI under the \u201cChina + 1\u201d strategy; MSME formalisation |
| Emerging Manufacturing Segments | Electronics; Batteries; Green hydrogen |
| Impact on Machinery Demand | Increasing requirement for advanced and high-precision machinery |
| Working Capital Trend | Digital credit reducing working capital cycles from 90 days to below 45 days |
| Benefit to Suppliers | Improved liquidity and faster production ramp-up |
| Impact on Machinery Utilisation | Higher machinery utilisation rates across manufacturing facilities |
| Regional Dynamics | West India remains dominant; South India witnessing rising demand due to aerospace, EV, and semiconductor clusters |
| Technological Advancements | Additive manufacturing reducing lead times and improving production precision |
| Industry Outlook | Expanding manufacturing ecosystem expected to accelerate demand for technologically advanced machinery and industrial solutions |
Source:
India Manufacturing Market Size, Share & 2031 Growth
IT Hardware Industry
| Particulars | Details |
| Market Size (CY 2025) | US$ 21.17 Billion |
| Projected Market Size (CY 2026) | US$ 22.61 Billion |
| Expected Market Size (CY 2031) | US$ 31.39 Billion |
| CAGR (CY 2026\u20132031) | 6.78% |
| Key Growth Drivers | Increasing enterprise digitisation; Continued hybrid-work adoption; Expansion of AI-focused infrastructure and edge data centers |
| Policy & Manufacturing Support | Production Linked Incentive (PLI) 2.0 scheme supporting large-scale localisation of manufacturing |
| Investments under PLI 2.0 | Exceeding 1.61 Lakhs Crore |
| Electronics Output Enabled | Approximately 14 Lakhs Crore |
| Strategic Industry Trends | Strengthening supply-chain resilience; Indigenous partnerships reducing import dependence for critical components |
| Industry Outlook | India emerging as a strong and competitive electronics manufacturing hub |
Source: https://www.mordorintelligence.com/industry-reports/india-it-hardware-market
Automobile and Auto Components
| Particulars | Details |
| Passenger Vehicle Sales Growth (Q4 FY 2025\u201326) | Increased 13.20% YoY |
| Passenger Vehicle Sales Volume (Q4 FY 2025\u201326) | 13.16 Lakhs units |
| Annual Passenger Vehicle Sales | 46.43 Lakhs units |
| Two-Wheeler Sales Volume | Exceeded 2.17 Crore units |
| Two-Wheeler Sales Growth | 10.70% |
| Commercial Vehicle Growth | 12.60% |
| Key Industry Trends | Strong domestic demand; Rising exports; Growth in EV adoption |
| Impact on Logistics Sector | Increased demand for time-definite and high-frequency logistics movement |
| Supply Chain Dynamics | Just-in-time manufacturing driving rapid movement of components across supplier networks |
| After-Sales Service Impact | Higher demand for fast and efficient spare parts distribution |
| Future Logistics Outlook | Growing dependence on specialised and technology-enabled express logistics solutions |
Source:
Society of Indian Automobile Manufacturers
Pharmaceuticals
| Particulars | Details |
| Market Size (CY 2025) | US$ 57.61 Billion |
| Expected Market Size (CY 2031) | US$ 79.74 Billion |
| CAGR (CY 2025\u20132031) | 5.74% |
| Key Growth Drivers | Expansion of generics; PLI-led API capacity addition; Rising chronic disease prevalence |
| Key Industry Participants | Pharmaceutical manufacturers; CDMOs; Institutional distributors |
| Importance of B2B Partnerships | Enabling efficient bulk movement, compliant handling, and time-sensitive supply chains |
| High-Growth Therapy Segments | Specialty therapies; Oncology treatments |
| Regulatory Support | Strengthening compliance requirements through the Central Drugs Standard Control Organisation (CDSCO) |
| Logistics Requirements | Reliable temperature-controlled logistics; Integrated distribution networks |
| Supply Chain Characteristics | Increasing complexity and specialisation across pharmaceutical supply chains |
| Market Opportunity | Strong B2B opportunities driven by institutional demand and specialised logistics requirements |
Source:
Indian Pharmaceutical Industry - Overview & Growth 2031
Consumer Durables
| Particulars | Details |
| Industry | Consumer Durables |
| Sector Growth Outlook | Expected to grow at 11% CAGR up to FY 2026\u201327 |
| Key Growth Drivers | Expanding domestic manufacturing; Policy-led incentives; Rising investments; Increasing FDI inflows |
| Electronics Manufacturing Market Size in CY 2025 | Projected to reach 27 Trillion |
| White Goods Market Outlook | Expected to reach 1,586 Trillion by CY 2030 |
| Government Support | Continued PLI-led incentives strengthening domestic production capabilities |
| Supply Chain Impact | Higher throughput across enterprise supply chains |
| Distribution Trends | Expansion of operations and deeper penetration into Tier II and Tier III markets |
| Logistics Impact | Increased inventory movement across manufacturers, distributors, and retailers |
| Export & Localisation Trends | Rising export activity and greater localisation increasing freight volumes and network complexity |
| Product Handling Requirements | Bulky and fragile products requiring specialised handling and warehousing |
| Logistics Requirements | Efficient, technology-enabled express logistics networks for time-definite and reliable B2B supply chain operations |
| Industry Outlook | Strong production and distribution scale-up expected to drive sustained logistics and warehousing demand |
Source:
Consumer durable sector snapshot - Q3FY26
Lifestyle and Textiles
| Particulars | Details |
| Market Size (CY 2025) | US$ 248.70 Billion |
| Expected Market Size (CY 2034) | US$ 656.30 Billion |
| CAGR (CY 2026\u20132034) | 11.38% |
| Share of Clothing Textiles | 40% of the overall market |
| Key Growth Drivers | Faster fashion cycles; Rapid e-commerce expansion; PLI-led capacity additions; Automation in manufacturing |
| Supply Chain Impact | Higher shipment volumes across the textile and apparel value chain |
| Shipment Trends | Increasing shift toward smaller, frequent, and time-sensitive shipments |
| Manufacturing Trends | Compression of production cycles due to automation and capacity expansion |
| Inventory & Delivery | Faster inventory turnover and tighter delivery timelines |
| Dynamics | |
| Industry Characteristics | Dispersed manufacturing base and seasonal demand patterns |
| Logistics Requirements | Scalable, agile, and technology-enabled express logistics solutions |
| Industry Outlook | Growing demand for efficient logistics networks to support fast-moving and responsive supply chain |
Source:
Indian Textile and Apparel Market Size & Trends 2026-2034
Engineering Goods
| Particulars | Details |
| Industry Significance | Key pillar of India\u2019s industrial ecosystem and a major export driver |
| Key Supporting Sectors | Infrastructure; Energy; Manufacturing |
| Policy Support | 100% FDI allowance and export promotion initiatives |
| Export Growth (January FY 2025\u201326) | Grew 10.40% YoY |
| Cumulative Exports (April\u2013 January FY 2025\u201326) | Exceeded US$ 100 Billion |
| Key Industry Trends | Export diversification; Deeper global integration |
| Supply Chain Impact | Rising demand for high-value and time-sensitive shipment movement |
| Logistics Requirements | Time-definite and reliable express logistics solutions |
| Operational Priorities | Just-in-time deliveries; Faster turnaround times; Enhanced shipment visibility |
| Cross-Border Trade Impact | Increasing need for efficient domestic and international logistics networks |
| Industry Outlook | Continued export momentum expected to strengthen demand for advanced express logistics and supply chain solutions |
Source:
Engineering goods exports up 10.4% in January,2026, crosses tr100 billion mark in April-January Period of FY26 - The Economic Times
Indias Engineering & Capital Goods Manufacturers Industry / IBEF
Food Processing
| Particulars | Details |
| Sector Growth Outlook | Expected to grow at 11\u201313% during FY 2025\u201326 to FY 2026\u201327 |
| Key Growth Drivers | Rising demand for value-added food products; Capacity expansion; Supply chain strengthening |
| Planned Investments | 6,400 Crore towards capacity expansion and supply chain development |
| Government Initiatives Supporting Growth | PMKSY; PLISFPI; PMFME |
| Impact of Government Support | Strengthening processing infrastructure and improving value chain efficiency |
| Supply Chain Impact | Increasing production and distribution volumes across domestic markets |
| Logistics Requirements | Faster and more reliable logistics solutions for large-scale distribution |
| Critical Logistics Need | Timely delivery and reduced spoilage for perishable products |
| Specialised Infrastructure Demand | Temperature-controlled logistics and integrated cold chain solutions |
| Last-Mile Connectivity | Growing need for robust and efficient last-mile distribution networks |
| Industry Outlook | Expanding food processing ecosystem expected to drive sustained demand for advanced cold chain and logistics infrastructure |
Source:
Press Release Page / Press Information Bureau
Food processing sector in India to log growth of 11-13% in FY26 and FY27 / Industry News - Business Standard
Defence & Aerospace
| Particulars | Details |
| Industry | Defence & Aerospace |
| Key Growth Drivers | Rising domestic production; Increasing exports; Focus on indigenisation |
| Defence Production (FY 2024\u201325) | 1.51 Lakhs Crore |
| Defence Exports (FY 2024\u201325) | 23,622 Crore |
| Sector Participation Trend | Increasing private sector involvement |
| Union Budget Allocation (FY 2025\u201326) | 6.81 Lakhs Crore |
| Budget Focus Areas | Higher capital expenditure; Strong emphasis on domestic procurement |
| Industry Outlook | Enhanced long-term growth visibility supported by policy and budgetary support |
| Supply Chain Characteristics | Expanding and increasingly complex defence and aerospace ecosystem |
| Logistics Requirements | Secure, compliant, and specialised logistics solutions for high-value equipment |
| Operational Priorities | Precision-driven handling; High-assurance logistics services |
| Industry Impact on Logistics | Rising demand for specialised logistics infrastructure and secure transportation networks |
Source:
Press Release Page / Press Information Bureau
Press Release:Press Information Bureau
CHALLENGES FACED BY THE INDIAN LOGISTICS
INDUSTRY
Rising costs due to geopolitical conflicts disrupting global trade routes
Geopolitical tensions in West Asia, particularly involving Iran, have sharply increased logistics costs for Indian exporters, with container shipping rates rising by upto 40%. Higher fuel costs, elevated insurance premiums and route diversions around key corridors such as the Strait of Hormuz have resulted in longer transit times and increased operating expenses, with rising logistics expenses exerting pressure on export competitiveness, especially in price-sensitive sectors.
Source:
Shipping Rates Jump 40% Amid Iran Conflict, Pressuring Indian Exporters - BW BusinessworldDiesel at Rs 192 per litre? Heres what the Petroleum Ministry has said amid the Iran war oil crisis - The Economic Times
Fuel price volatility creating planning uncertainty and unpredictable cost structures
Fuel price volatility continues to create planning uncertainty and unpredictable cost structures in Indias logistics sector. Rising global crude prices have driven bulk diesel costs higher by ~ 22 per litre, increasing transportation expenses, while retail prices remain relatively stable due to government intervention. This divergence between bulk and retail pricing complicates cost forecasting and pricing strategies. As fuel constitutes a significantshare of operating costs, such volatility results in margin pressure, limited pricing visibility, and a greater need for cost optimisation.
Source:
Diesel price hiked? Check latest rates in your city as premium petrol cost goes up by Rs 2 - The Economic Times
Complex multi-layered regulatory environment across taxation and transport
The Indian logistics sector operates within a complex, multi-layered regulatory framework spanning central taxation (GST), state-level procedures and transport-related compliance requirements. While mechanisms such as the e-way bill system have improved transparency, they remain enforcement-driven, involving mandatory documentation and frequent checks. This leads to operational delays, administrative burden, and uncertainty in transit timelines. Consequently, logistics providers face higher compliance costs and reduced supply chain efficiency.
Source:
Economic Survey bats for trust-based e-Way Bill system to ease logistics / Budget 2026 News - Business Standard
Cybersecurity risks growing in tandem with digital adoption in the sector
Rapid digitalisation is increasing cybersecurity risks in Indias logistics sector, with cyber incidents rising 61% in CY 2025 and expected to double in CY 2026, up nearly 1,000% since CY 2021. As logistics networks become increasingly interconnected through digital platforms and shared systems, vulnerabilities have intensified. Consequently, a single breach can disrupt multiple stakeholders across the supply chain, leading to operational disruptions, data loss, financial impact, and reputational damage, making cybersecurity a critical challenge for the sector.
Source:
Digital Shift Exposes Indian Logistics To Cyber Risks – BW Businessworld Cyberattacks on logistics are expected to double in 2026, says Everstream Analytics - Supply Chain 24/7
Logistics workforce skill gap and high workforce attrition
The Indian logistics industry faces a shortage of skilled talent despite strong employment growth. The sector is expected to require around 47 Lakhs additional workers by CY 2030, significant skill highlighting gap and need for workforce development. Even as hiring grew by approximately 10.80% in CY 2025, the availability of trained professionals remains limited, indicating a demand-supply mismatch. This challenge is further exacerbated by high attrition in operational roles, driven by demanding work conditions, impacting efficiency and scalability.
Source:
India needs major skilling reforms to bridge 47 lakh workforce gap in logistics sector - The Economic Times
Infrastructure Bottlenecks & Urban Congestion
The Indian logistics industry faces challenges from infrastructure bottlenecks and rising urban congestion, impacting efficiency and delivery timelines. Inefficiencies in internal network coordination are leading to significant losses, with the organised retail sector incurring over 2,000 Crore annually despite strong last-mile delivery performance. As highlighted in the Economic Survey FY 2025-26, urban infrastructure has lagged behind the economic importance of cities, resulting in congestion and infrastructure stress. These factors contribute to delays, higher operating costs, and reduced supply chain reliability.
Source :
Internal logistics gaps cost Indias organised retail sector over Rs 2,000 crore a year: Report - The Economic Times
Higher Reliance on Road Network
The Indian logistics sector remains heavily reliant on road transport, which accounts for approximately
66% of total freight movement,significantly higher than other modes such as rail and waterways. While road transport offers extensive network coverage and operational flexibility, this overdependence results in higher logistics costs, with road freight costing around 3.78 per tonne-km compared to 1.96 for rail. The modal imbalance also exposes the sector to congestion, fuel price volatility, and infrastructure constraints. Despite ongoing policy efforts to promote multimodal logistics, limited diversification continues to impactefficiency and cost competitiveness of supply chains.
New Labour Code in India
Indias four Labour Codes — Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code — came into effect from 21st November 2025, consolidating 29 erstwhile labour laws. The revised wage framework may influence employee benefit costs while strengthening employee welfare and simplifying labour compliance.
Rising Operating Costs
Rising costs in Indian logistics stem from multiple drivers beyond fuel. Driver wages have climbed steadily amid a persistent shortage of skilled manpower, while commercial vehicle insurance premiums remain high. Vehicle ownership costs — EMIs and depreciation add further pressure, alongside rising warehouse rentals in key metros driven by real estate demand. Moreover, higher toll charges elevating transportation and logistics costs.
Growing Compliance Complexity
Indian logistics operators navigate a fragmented, multi-layered compliance landscape spanning central GST, state-level permits, and transport regulations that vary across state borders. Enforcement has grown more stringent GSTN now cross-verifies e-way bills against FASTag toll records and e-invoice data in real time, auto-flaggingmismatches for scrutiny.
GLOBAL ECONOMIC OUTLOOK Global Economic Overview
The global economy remained resilient in CY 2025, registering growth of 3.40%, underpinned by sustained technology investments, policy support, and strong private sector adaptability. However, escalating geopolitical tensions disrupted hydrocarbon supply chains, leading to elevated energy prices and exerting pressure on growth across major economies. ws have begun to realign, with companies diversifying sourcing strategies, expanding into new markets, and reducing dependence on specific regions. Despite these challenges, the underlying economic momentum built prior to these disruptions has acted as a stabilizing force, enabling the global economy to absorb the impact.
| Region/Economy Type | CY 2025 | CY 2026 (P) | CY 2027 (P) |
| Global Economy | 3.40% | 3.10% | 3.20% |
| Advanced Economies | 1.90% | 1.80% | 1.70% |
| Emerging Market and Developing Economies | 4.40% | 3.90% | 4.20% |
Global Inflation and Monetary Policy
Global headline inflation remained broadly stable at 4.10% in CY 2025 and is expected to edge up to 4.40% in CY 2026, reflecting following the Strait of Hormuz closure, which lifted energy and, in turn, food prices. As supply conditions improve, inflation is projected to moderate to around 3.70% by CY 2027, indicating a gradual easing of cost pressures.
Central banks continue to adopt a calibrated, data-driven approach, balancing inflation management with growth support while maintaining policy consistency and anchoring public confidence.
| Calendar Year | Growth Rate (%) |
| CY 2025 | 4.10% |
| CY 2026 | 4.40% |
| CY 2027 | 3.70% |
Geopolitical conflicts in Middle East impacting shipping routes and freight costs
The escalation of geopolitial tensions in the Middle East, particularly disruptions in the Strait of Hormuz and Red Sea routes, supply chains, trafficthrough key with shipping lanes declining by over 90%. This led to congestion, delays, and route diversions, driving a sharp increase in freight and insurance costs. Concurrently, Brent crude prices surged from around US$ 60 per barrel to over US$ 100–120, while Asian LNG prices rose by 143%, further inflating transportation and operating costs across industries and increasing overall supply chain volatility.
Outlook
The global economy remains stable, although geopolitical tensions and supply chain disruptions continue to create uncertainty. Growth is expected to moderate to 3.10% in CY 2026, mainly due to higher energy prices driven by ongoing pressures gradually ease, growth is projected to edge up to 3.20% in CY 2027, reflecting a more stable environment.
Even with these challenges, government support and improvements in productivity, including from AI, are expected to support growth. However, if conflicts persist for longer, it could keep energy prices elevated, increase inflation, and tighten financial conditions, temporary supply disruptions which may affect global growth.
Source: https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026
Escalating Middle East conflicts have caused multiple supply shocks
- CGTN
GLOBAL EXPRESS LOGISTICS
INDUSTRY AND FUTURE TRENDS
Global express delivery market on a sustained long-term growth trajectory
The global express delivery market is projected to grow from US$ 255.53 Billion in CY 2025 to US$ 361.26 Billion by CY 2031, at a CAGR of 5.83%, driven by rising demand for time-definite deliveries, rapid growth in cross-border e-commerce, and the transition of postal operators toward parcel-led logistics models. As international shipments continue to expand, the industry is also navigating geopolitical disruptions around critical trade routes such as the Strait of Hormuz. In response, logistics players are rebuilding networks in real time through alternate routing and multimodal transportation solutions to maintain supply chain continuity and delivery reliability across global trade corridors.
| Year | Market Size (USD Billion) |
| CY 2025 | USD 255.53 B |
| CY 2026 | USD 272.17 B |
| CY 2031 | USD 361.26 B |
US$ 255.53 Billion
Market Size (CY 2025)
US$ 361.26 Billion .
As these Projected Market Size (CY 2031)
5.83% CAGR
Projected Market Size (CY 2031)
Growth Drivers
Rising Demand for Faster Deliveries Driving Industry Growth:
Rising e-commerce adoption is driving strong demand for express delivery services. The global e-commerce market is expected to reach US$ 77.58 Trillion by CY 2031 from US$ 36.21 Trillion in CY 2026, growing at a CAGR of 16.46% (CY 2026-2031), increasing the need for faster and more efficient delivery networks
| US$ 29.69 Billion | US$ 162.06 Billion | 18.50% |
| (CY 2025)Same-Day Delivery Market | (CY 2035)Same-Day Delivery Market | Market CAGR |
Rising E-commerce Driving Demand for Express Delivery:
Rising e-commerce adoption is driving strong demand for express delivery services. The global e-commerce market is expected to reach US$ 155.98 Trillion by CY 2033 from US$ 33.91 Trillion in CY 2025, growing at a CAGR of 21.60% (CY 2026-2033), increasing the need for faster and more efficient delivery networks.
| US$ 36.21 Trillion | US$ 77.58 Trillion | 16.46% |
| Global E-Commerce Market 2026 | Global E-Commerce Market 2031 | Market Growth CAGR (CY 2026 2031) |
Source: https://www.mordorintelligence.com/industry-reports/global-ecommerce-market
Technology Adoption Improving Logistics Efficiency:
Increasing adoption of AI and IoT is improving logistics efficiency through real-time tracking, route optimisation, and faster deliveries. Global investments in logistics technology are expected to exceed US$ 200 Billion in future, supporting further operational efficiency and growth in the express delivery market.
US$ 200 Billion
Expected future global investments in logistics technology
Source:
Express Delivery Market Size, Analysis & 2031 Share
Shipping engineers a Hormuz bypass as carriers rebuild networks Same Day Delivery Market Size & Share [2035] https://www.kenresearch.com/global-international-express-delivery-market / https://www.grandviewresearch.com/industry-analysis/e-commerce-market
Trends To Govern Express Delivery In FY 2026-27
| Trend | Key Drivers | Industry Response | Strategic Impact |
| Network Agility & Resilience | Geopolitical disruptions, trade route volatility, supply chain cost pressures | Diversified routing, multimodal integration, real- time visibility tools | Improved operational continuity, faster disruption response and stronger network reliability |
| Sustainability-led Transformation and Green Logistics | Tightening emission regulations, evolving customer expectations, sustainability targets | Adoption of EVs, hydrogen and biofuel-based transport solutions, integration of cleaner mobility infrastructure | Lower carbon intensity, improved cost efficiency and stronger long-term competitive positioning |
| Technology-led Efficiency & Capacity Expansion | Growing operational complexity, demand for faster decision-making, expansion of digital logistics ecosystems | IoT, Robotics & AI-led route optimisation, automation, predictive analytics, digital freight marketplaces and data-driven logistics platforms | Improved asset utilisation, higher productivity, enhanced scalability and margin expansion |
| Hyperlocal & Tier II/III City Expansion | Rising regional consumption, growing e-commerce penetration, improving infrastructure connectivity | Expansion of hyperlocal delivery networks, regional distribution infrastructure and last-mile logistics capabilities | Deeper market penetration, stronger regional connectivity and accelerated growth opportunities in emerging markets |
ABOUT TCI EXPRESS LIMITED
TCI Express continues to strengthen its position as a leading B2B express delivery company in India, building on its legacy while advancing its independent growth journey since its demerger in FY 2016. Growth is driven by time-execution, and a deep understanding of customer requirements across industries. Supported by a fully owned pan-India network, The Company ensures consistent service standards with agility in handling time-sensitive shipments, serving a diversified reflects its emphasis base across automotive, telecom, retail, textiles, Solar and EV with reliable, time-bound solutions. Capabilities are anchored in a multimodal framework spanning Surface Express, Domestic and International Air Express, Rail Express, C2C Express, E-commerce Express, and specialised Pharma Cold Chain services, with operational flexibility through Sunday and holiday services, late pickups, and expanding reach across Tier II and Tier III cities.
An extensive branch network, strong air connectivity, efficient cargo andalargecontainerised fleet movement, optimised transit times, and reliable last-mile delivery, further strengthened by ERP-enabled systems, automation, barcoding, GPS tracking, AI and Machine Learning integration, automated sorting, real-time tracking, airline master systems, and pre-alert mechanisms to enhance visibility, control, and service reliability.
The Company remains focused on sustainable growth through ESG integration, including renewable energylogistics, disciplined adoption, emission reduction, and strong governance, supported by ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications. Recognition as a Great Place to Work for 6 consecutive years and among Indias mostpreferredbrands on people, culture, and long-term stakeholder value. With a resilient operating model and continued investments in technology and automation, The Company is well-positioned to enhance customer experience and sustain growth in Indias evolving logistics landscape.
ISO 9001:2015
Quality Management Certification
ISO 14001:2015
Environmental Management Certification
ISO 45001:2018
Occupational Health & Safety Certification
BUSINESS SEGMENTS
Surface Express
The Surface Express segment remains the core revenue driver, supported by a nationwide network of 60,000+ locations and 1000+ company-owned branches. Growth during the period was driven by higher volumes from key accounts and strong demand across automotive, defence, Solar, EV and pharma sectors. The segment continues to anchor scale, network efficiency and revenue stability.
Domestic Air Express
The Domestic Air Express segment is the Companys time-critical, premium logistics offering, supported by a network across 150+ air gateways and integrated multimodal connectivity. The segment reported healthy growth during the period, driven by enhanced carrier capacity, improved airport connectivity and faster turnaround times. With 24–48 hour delivery capabilities and a growing customer base, the business continues to strengthen service reliability and improve yield realisation.
International Air Express
The International Air Express segment drives cross-border growth, connecting 200+ countries with end-to-end logistics solutions. Performance was supported by customer additions, increased cargo capacity and stronger global partnerships, positioning the business as a key diversification lever.
Rail Express
The Rail Express segment serves as a cost-efficient and scalable logistics solution, leveraging Indias railway infrastructure to enable faster transit at lower cost. The segment reported strong growth during the period, driven by increased adoption across key industries and expansion across high-potential routes. With an asset-light model, dedicated operations and integration with existing express services, the business continues to improve capacity utilisation, enhance margins and strengthen multimodal capabilities.
C2C Express
The C2C Express segment provides full truckload and multimodal logistics solutions across a pan-India network. The segment recorded strong growth, driven by customer additions and regional expansion. Supported by flexible transportation models and real-time tracking, the business continues to enhance asset utilisation and diversify revenue streams.
E-Commerce Express
The E-Commerce Express segment focuses on B2C and last-mile logistics, offering end-to-end solutions from fulfillment to delivery. The segment witnessed strong momentum, driven by expansion of biker deliveries, dedicated infrastructure and growing e-commerce demand. Supported by technology integration and new hub additions, the business continues to strengthen last-mile capabilities and support future growth.
STRENGTHS THAT SET US APART
Asset Light Business Model
Operations follow an asset-light structure, enabling efficient capacity scaling, low working capital requirements, and strong returns on capital through disciplined cost management.
High Value & Specialised Cargo Focus
Emphasis on high-value, low-volume shipments, enabling better yield management and margin optimisation across sectors such as pharma, automotive, defence, solar, EV and MSMEs.
100% COMPANY Operated Branches
Complete ownership and operation of all branches, ensuring strong operational control, uniform service standards, and consistent execution across the network.
Unleveraged financial Position Zero-debt position maintained, providing financial flexibility to invest in growth, strengthen infrastructure, and deliver sustained value to stakeholders.
Lowest Cost Structure in the industry
Industry-leading cost efficiency driven by asset-light operations, network productivity, and optimised capacity utilisation, ensuring competitive pricing for customers.
Containerised freight movement
End-to-end containerised transportation enabled, ensuring secure handling, reduced damage and pilferage, and consistent service quality across surface, rail, and air networks.
Bespoke Solutions Across Niche Segments
Customised, sector-specific logistics solutions delivered for industries such as pharma cold chain, defence, aerospace, and engineering.
Extensive geographic Presence
Extensive network covering over 60,000+ locations with an international presence across 200+ countries and territories, continuously strengthened through expansion of branch infrastructure, service points, and delivery capabilities across metro and Tier I markets.
Advanced API-Based Technology
Seamless system integration with customer platforms, supporting real-time data exchange, improved coordination, and enhanced supply chain visibility.
Strong Credit Ratings
Credit instruments rated by leading agencies, with CRISIL AA- and ICRA A1+, reflecting prudent financial management, disciplined capital allocation, and sustained institutional
End-to-end automation
Automation across core processes, supported by ERP systems, automated sorting centres, real-time tracking, and AI-driven solutions, enhancing operational efficiency and service reliability.
KEY OPERATIONAL HIGHLIGHTS
Branch Network Expansion
Addition of ~75 new branches during FY 2025-26, strengthening the Companys geographic reach across key markets while enhancing last-mile connectivity and customer accessibility across service verticals.
~75 Additions
Branch Expansion during 2025-26
Sorting centre automation milestones
Automation of key sorting centres at Gurugram and Pune, significantly improving throughput, reducing sorting time, and enhancing operational efficiency through AI-enabled systems and advanced automation.
New Sorting Centres in Central India
Planned commissioning of advanced sorting centres at Nagpur, Raipur, and Indore to strengthen operational capacity, reduce transit time, and enhance overall logistics efficiency across key regions.
Capacity Utilisation
Capacity utilisation maintained at 83.50%, with optimal levels of 85 86%, supporting cost efficiency through improved utilisation and operational flexibility.
83.50%
Capacity Utilisation
Customer Additions and Engagement
Strong customer additions driven by onboarding of new enterprise and key accounts, along with deeper engagement and increased business contribution across key segments.
Manpower Additions & Training
Net addition of 90+ employees during FY 2025-26 to support network expansion, complemented by structured training and capability-building initiatives for business associates and logistics staff to enhance service quality and customer interaction.
90+ Additions
Workforce Expansion during 2025-26
ISO Certifications
During the period, The Company has been certified under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, reflecting its continued focus on quality, environmental responsibility, and workplace safety.
Great Place to Work Recognition
TCI Express has been certified as a Great Place to Work for the sixth consecutive year and recognised as Indias most preferred brand for 2025-26, reinforcing its commitment to people, governance, and long-term value creation.
| Certifications | ISO 9001:2015 | ISO 14001:2015 | ISO 45001:2018 |
| Recognitions | Great Place to Work (FY 2025-26) |
Consistent Dividend Payout
Declared an interim dividend of 7 per share, representing a payout of 350% on the face value of 2 per share, reflecting the Companys continued focus on delivering value to shareholders.
7 per Share
interim Dividend
350%
Dividend Payout
FINANCIAL REVIEW AND PERFORMANCE
Operating Revenue
The Company reported operating revenue of 1,236.16 Crores during 2025-26, reflecting compared to 1,208.27 Crores in the corresponding period last year. The steady performance highlights the Companys resilience amidst a mixed demand environment, supported by consistent service execution, network expansion, and sustained customer engagement.
1,236.16 Crores 2.31% YoY
Operating Revenue (2025–26) Growth Rate
EBITDA and EBITDA Margin
EBITDA stood at 146.02 Crores during the year, reflecting a growth of 2.10% compared to 143.01 Crores in FY 2024-25. EBITDA margin was maintained at 11.68%, on par with the previous year, reflecting the Companys ability to sustain cost discipline and operational efficiency despite an environment of elevated fuel costs, rising labour costs and geopolitical headwinds.
146.02 Crores 11.68%
EBITDA (2025–26) EBITDA Margin
Profit After Tax (PAT) and PAT Margin
During 2025-26 Company reported 89.84 Crores of PAT, compared to 90.77 Crores in FY 2024-25, registering a marginal decline of 1.02%. PAT margin was 7.18%, compared to 7.43% in the previous year. The slight moderation is in line with elevated operating costs during the year, partially offset by stable revenue growth and continued focus on cost optimisation.
89.84 Crores 7.18%
Profit After Tax (2025 26) PAT Margin
Earnings Per Share (EPS)
Earnings per share stood at 23.39, compared to 23.66 in the corresponding period last year, reflecting a marginal decline of 1.31%, aligned with the modest moderation in profitability during the year.
23.39
EPS
Receivable Days
Receivable days improved to 58 days in FY 2025-26, compared to 59 days in FY 2024-25. The improvement reflects continued discipline in receivables management, supported by focused collection efforts and strong customer credit control mechanisms across the network.
58 Days
Receivable Days (FY 2025–26)
Cash Conversion Ratio
The cash conversion ratio stood at 71.08% in FY 2025-26, compared to 82.18% in FY 2024-25. The moderation reflects higher capital expenditure of 67.00 Crores incurred during the year towards branch network expansion, construction of sorting centres and technology infrastructure upgrades, partially offset by robust cash flow from operations of 103.80 Crores.
71.08%
Cash Conversion Ratio (FY 2025–26)
Current Ratio
The current ratio stood at 3.16x in FY 2025-26, compared to 3.23x in FY 2024-25. While marginally lower, the ratio continues to reflect a strong liquidity position, with the Company maintaining adequate coverage of short-term obligations and a debt-free balance sheet supported by cash profit of 116.59 Crores as at 31 March, 2026.
3.16x
Current Ratio (FY 2025 26)
FIVE-YEAR FINANCIAL PERFORMANCE AT A GLANCE
(Rs. in Crore except as stated)
| STANDALONE BASIS | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Total Income | 1,250.42 | 1,221.14 | 1,260.97 | 1,248.18 | 1,089.64 |
| Operating Margin (%) | 28.25 | 28.65 | 31.52 | 31.53 | 32.22 |
| EBITDA | 146.02 | 143.25 | 194.40 | 201.65 | 182.90 |
| Finance Cost | 1.87 | 1.25 | 1.47 | 1.81 | 0.91 |
| Depreciation & Amortisation | 25.39 | 21.86 | 18.95 | 15.31 | 9.98 |
| Profit before Tax & Exceptional Items | 118.77 | 120.14 | 173.97 | 184.53 | 172.01 |
| Taxes | 28.93 | 29.37 | 42.28 | 45.25 | 43.17 |
| Net Profit | 89.84 | 90.77 | 131.70 | 139.28 | 128.84 |
| Cash Profit | 116.59 | 113.93 | 153.47 | 157.70 | 141.61 |
| Dividend Per Share (Rs ) | 9.00 | 8.00 | 8.00 | 8.00 | 8.00 |
| Earning Per Share (Rs) | 23.39 | 23.66 | 34.36 | 36.24 | 33.48 |
| Gross Block | 619.95 | 552.77 | 534.16 | 488.79 | 371.84 |
| Net Block | 522.55 | 475.02 | 467.77 | 435.22 | 325.89 |
| Receivables | 238.63 | 225.80 | 231.76 | 211.47 | 189.54 |
| Equity Share Capital (FV Rs 2.00 per share) | 7.68 | 7.68 | 7.67 | 7.66 | 7.70 |
| Net Worth | 828.82 | 769.33 | 704.05 | 596.37 | 536.19 |
| Capital Employed | 864.20 | 788.81 | 721.41 | 610.71 | 544.38 |
| Avg. Capital Employed | 826.50 | 755.10 | 666.06 | 577.55 | 492.37 |
| Return on Net Worth (%) | 11.24% | 12.32% | 21.72% | 24.60% | 26.55% |
| Return on Capital Employed (%) | 14.60% | 16.08% | 26.23% | 32.26% | 35.11% |
| Current Ratio (in times) | 3.06 | 3.18 | 2.91 | 2.41 | 2.93 |
| Receivable Days | 58 | 59 | 55 | 50 | 51 |
| Payable Days | 33 | 39 | 38 | 38 | 37 |
| Net Working Capital Cycle (Days) | 25 | 20 | 17 | 12 | 14 |
| Cash Conversion ratio (%) | 71.08% | 82.18% | 69.99% | 72.90% | 70.00% |
| Book Value per share (in ) | 215.65 | 200.51 | 183.18 | 155.17 | 139.51 |
(Rs. in Crore except as stated)
| CONSOLIDATED BASIS | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
| Total Income | 1,252.67 | 1,221.71 | 1,260.97 | 1,248.18 | 1,089.64 |
| Operating Margin (%) | 28.32 | 28.65 | 31.52 | 31.53 | 32.22 |
| EBITDA | 140.51 | 138.36 | 194.40 | 201.65 | 182.90 |
| Finance Cost | 2.13 | 1.31 | 1.47 | 1.81 | 0.91 |
| Depreciation & Amortisation | 25.74 | 21.87 | 18.95 | 15.31 | 9.98 |
| Profit Before Tax & Exceptional Items | 112.65 | 115.18 | 173.97 | 184.53 | 172.01 |
| Taxes | 28.93 | 29.37 | 42.28 | 45.25 | 43.17 |
| Net Profit | 81.57 | 85.81 | 131.70 | 139.28 | 128.84 |
| Cash Profit | 108.68 | 108.97 | 153.47 | 157.70 | 141.61 |
| Dividend Per Share (in ) | 9.00 | 8.00 | 8.00 | 8.00 | 8.00 |
| Earning Per Share (in ) | 21.21 | 22.36 | 34.36 | 36.24 | 33.48 |
| Gross Block Assets | 668.01 | 560.07 | 534.16 | 488.79 | 371.84 |
| Net Block Assets | 575.06 | 482.32 | 467.77 | 435.22 | 325.89 |
| Receivables (Net) | 238.65 | 225.89 | 231.76 | 211.47 | 189.54 |
| Equity Share Capital (FV Rs 2 per share) | 7.68 | 7.68 | 7.67 | 7.66 | 7.70 |
| Net Worth | 818.80 | 764.41 | 704.05 | 596.37 | 536.19 |
| Total Debts | 33.16 | - | 2.96 | 0.73 | 0.98 |
| Capital Employed | 889.78 | 783.88 | 721.41 | 610.71 | 544.38 |
| Avg. Capital Employed | 836.84 | 755.10 | 666.06 | 577.55 | 492.37 |
| Return on Net Worth (%) | 10.30% | 11.69% | 21.72% | 24.60% | 26.55% |
| Return on Capital Employed (%) | 13.72% | 15.48% | 26.23% | 32.26% | 35.11% |
| Current Ratio (in times) | 3.12 | 3.20 | 2.91 | 2.41 | 2.93 |
| Receivable Days | 58 | 59 | 55 | 50 | 51 |
| Payable Days | 33 | 39 | 38 | 38 | 37 |
| Net Working Capital Cycle (Days) | 25 | 20 | 17 | 12 | 15 |
| Cash Conversion Ratio (%) | 72.19% | 85.74% | 69.99% | 72.90% | 70.00% |
| Book Value Per Share (in ) | 213.04 | 198.89 | 183.18 | 155.17 | 139.51 |
RISK AND MITIGATION
| Risk Identified | Impact | Mitigation |
| Transit-Related Cargo Risk | Cargo in transit remains exposed to risks such as accidents, pilferage, hijackings, and other security threats, which may result in financial losses and impact customer satisfaction, | The Company mitigates these risks through a comprehensive framework, including insurance coverage for transit-related damages and real-time surveillance and tracking systems to monitor shipments and promptly address any irregularities. |
| Fuel Price Volatility Risk | Volatility in global fuel prices and supply uncertainties pose a risk to profitability by impacting transportation costs and operational stability. | This risk is mitigated through a dynamic fuel surcharge mechanism, periodic freight rate revisions, and contractual arrangements that enable partial pass- through of cost fluctuations, supporting margin stability and ensuring a more predictable pricing framework for both the Company and its customers |
| People Risk | The logistics industry relies heavily on a skilled and dedicated workforce, and staffing shortages or attrition of key employees may disrupt operations and impact performance. | These risks are mitigated through employee retention initiatives such as comprehensive health insurance, recognition programmes, and a competitive compensation and incentive structure, supported by a safe and healthy working environment that drives engagement and sustains operational efficiency. |
| IT and Technology Risk | In an environment of rising cyber threats and digital disruptions, logistics operations remain exposed to risks such as data breaches and network instability, which may impact efficiency and customer trust. | These risks are addressed through robust information security policies, advanced technology systems, and regular backups to ensure business continuity, supported by an integrated IT platform enabling real-time visibility and data-driven decision-making, alongside AI adoption to enhance efficiency, productivity, and cost optimisation. |
| Infrastructure Risk | Inadequate transportation infrastructure and poorly maintained storage facilities may impact logistics operations, leading to delays and reputational risks. | This is mitigated through alignment with national infrastructure initiatives and continuous investment in advanced sorting centres and storage facilities at key nodal locations, ensuring efficient and secure cargo handling. |
| Competition Risk | The express logistics industry is highly competitive, with players striving to expand market share, customer loyalty, and brand strength. | Risk mitigation is driven by established industry experience and strong brand positioning, supported by consistent service quality and nationwide coverage across 100% of Indian PIN codes and over 60,000+ delivery locations, reinforcing reliability and operational efficiency. |
| Risk Identified Impact | Mitigation | |
| Business Continuity Risk | Business continuity risk includes potential disruptions from unforeseen incidents or disasters that may impact operations and result in financial or non-financial losses. | This risk is addressed through a robust Business Continuity Management (BCM) framework, ensuring operational resilience and continuity of critical functions through a structured approach to planning, control, and response aligned with specific operational requirements and risk scenarios. |
| ESG and Sustainability Risk | Compliance with ESG requirements is critical for long-term sustainability, as non- compliance may expose the Company to legal, financial, and reputational risks. | Managed through a structured ESG roadmap, including adoption of CNG and BS-VI compliant vehicles, increased EV deployment, and solar investments at sorting centres, supported by recognised certifications for GIGA facilities, reinforcing commitment to sustainability and environmental excellence. |
INFORMATION TECHNOLOGY
Technology remains central to operations, driving efficiency, customer experience, and competitive positioning through advanced digital infrastructure that enables seamless logistics management with real-time tracking and process automation, improving accuracy, transparency, and service delivery. Ongoing investments include
AI-enabled enhancements at automated sorting centres and ERP integration to streamline workflows and strengthen customer engagement, while fleet operations are supported by telematics, GPS tracking, and predictive maintenance systems, enhancing vehicle performance, safety, and route optimisation to reduce transit time and fuel consumption and ensure timely deliveries. A digitally integrated mobile application provides real-time shipment visibility and personalised support, further strengthened by the adoption of AI, blockchain, IoT-enabled monitoring, barcode systems, and API integration, enabling scalable, end-to-end digital capabilities. These initiatives are underpinned by a robust cybersecurity and IT risk management framework, ensuring data protection, system reliability, and business continuity, while supporting continuous adoption of emerging technologies.
HUMAN RESOURCES
Human capital remains a critical asset, with a focus on an inclusive, safe, and supportive workplace that promotes employee well-being and professional development, aligned with priorities of superior service, sustainable growth, and long-term value creation, underpinned by a culture of safety, ethics, equal opportunity, and strong governance. The workforce comprises over 2,769 employees, predominantly permanent, with ongoing efforts to improve gender diversity, with women representing 15% of employees, and to enhance inclusivity through participation of persons with disabilities.
Comprehensive well-being initiatives cover 100% of employees, including health and accident insurance, maternity benefits, healthcare access, regular screenings, preventive care, and mental wellness programmes, alongside retirement benefits such as PF, gratuity, and ESI. Infrastructure supports accessibility through disabled-friendly entrances, parking, assistive facilities, and appropriate signage, ensuring a barrier-free environment. During FY 2025–26, training programmes across technical, safety, capability, and leadership areas fostered continuous learning, supported by a structured career transition programme, while the performance management framework ensures 100% employee coverage for regular development assessments. A strong focus on occupational health and safety is maintained through OHSMS and HSE policies across all facilities, with employees equipped to manage operational risks effectively.
A zero-tolerance approach to discrimination and harassment is upheld, supported by a robust human rights framework and multiple reporting channels, including an online grievance redressal system with defined timelines and escalation mechanisms to ensure transparency and accountability.
| 2,769 | 15% |
| Total Employees | Women |
INTERNAL AUDIT
The scope and authority of the internal audit function are clearly defined, with direct reporting to the Audit Committee of the Board to ensure independence and objectivity. At the beginning of each financial year, a Risk-Based Internal Audit (RBIA) plan is implemented following Audit Committee approval, focusing on evaluating the effectiveness and adequacy of internal controls, robustness of processes, policies and accounting procedures, and compliance with applicable laws and regulations. The function is supported by a skilled team comprising qualified accountants, engineers, specialists in fraud risk and information technology, enabling delivery of high-quality audit assurance. Based on audit findings, process owners undertake corrective actions, and significant observations along with their remediation status are regularly presented to the Audit Committee.
CAUTIONARY STATEMENT
The statements contained in this Management Discussion & Analysis (MD&A), including those relating to the Companys objectives, projections, estimates, and expectations regarding general market trends, may constitute forward-looking statements within the meaning of applicable laws and regulations. Such statements are based on current assumptions and expectations and are subject to various risks, uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied in these forward-looking statements.
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