TCI Express Ltd Management Discussions

INDIAN ECONOMY: AN OVERVIEW

The ‘Vision Amrit Kaal 2047, a blueprint for a new, developed India by 2047, envisages the restructuring of the Indian economy by the upliftment of the living conditions, sustainable growth, infrastructural and technological advancements. As it can be seen, India has taken a leadership stance among the emerging economies and has become a face of growth and optimism even in the current turbulent global macroeconomic environment. Here, India can be seen advancing on the path promised under the Amrit Kaal Vision. The Government of India (GoI) anticipates the nation to become the third-largest global economy by FY 2027-28, with its Gross Domestic Product (GDP) surpassing $ 5 trillion. Indian economy marches in 2025 with renewed vigour and confidence, with its broader macroeconomic fundamentals remaining stable and robust domestic consumption demand driving the growth further north, backed by higher government spending and robust infrastructure development.

A close look at the major economic highlights of FY 2024-25 reveals a stable course that the Indian economy has traversed so far. Headline inflation has lowered considerably from over 6% in October 2024 to 3.34% in March 2025, supported by lower food inflation. However, volatility in commodity prices and weather anomalies may pose potential risks. Despite challenges from weakening global trade and tariff uncertainties, Indias exports remain resilient, driven by strong services exports, which comprise majorly of IT and IT-enabled services and hence, are relatively insulated from global disruptions. Looking ahead, Indias structural strengths, which include prudent fiscal policies, a resilient monetary framework, and rapid digital transformation, are set to reinforce long-term, sustainable economic growth.

The Second Advance Estimate of Annual Gross Domestic Product (GDP) for FY 2024-25, released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in February 2025, pegs the estimated real GDP growth rate at 6.5% while the nominal GDP is expected to witness a growth rate of 9.9% in FY 2024-25. To realise the ambition of Viksit Bharat by 2047, India must sustain an average GDP growth rate of approximately 8% at constant prices over the next one to two decades. The medium-term growth outlook must factor in evolving global dynamics, ranging from the Green Energy Transition and the global economic fragmentation (GEF) in manufacturing. Analysing the factors of GDP growth closely, it appears that the urban unemployment remained at a historic low of 6.4%, underscoring continued resilience in the labour market. The cumulative value of merchandise exports for FY 2024–25

Source: The Reserve Bank of India Bulletin, March 2025

(April–March) stood at US$ 437.42 billion, reflecting a marginal year-on-year growth of 0.08% over US$ 437.07 billion recorded in FY 2023–24. This modest increase was primarily driven by higher exports of key items such as coffee, tobacco, electronic goods, rice, jute manufactures, tea, carpets, textiles, and drugs & pharmaceuticals. Private Final Consumption Expenditure (PFCE) is projected to grow by 7.6% in FY 2024-25, up from 5.6% in the previous fiscal, reflecting improving consumer sentiment. Government Final Consumption Expenditure (GFCE) is also expected to be strong with a growth of 4.1%, compared to 2.5% in FY 2023-24. Accelerated capital spending on infrastructure and asset creation is expected to amplify growth multipliers. As per the First Advance Estimates released by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI), and the Economic Survey 2024-25, Gross Fixed Capital Formation (GFCF) at constant prices is estimated to rise by 6.4%.

On the domestic front, the government is prioritising systematic deregulation to revitalise key growth drivers. Over the past five years, the central thrust has been on augmenting public infrastructure investments, accelerating project approvals, and enhancing resource mobilisation. Indias structural transformation is being propelled by key policy and sectoral shifts. Renewable energy now accounts for 47% of the countrys total installed capacity, underlining progress toward clean energy goals. Digital infrastructure has also witnessed a rapid scale-up, with the nationwide rollout of 5G services across all states and union territories by October 2024. Simultaneously,frameworkssuchastheNationalInfrastructure Pipeline and the National Monetisation Pipeline are catalysing private sector participation in core sectors. Together, these measures are helping build the foundation for a resilient and inclusive economy, positioning India to maintain a stable and robust growth trajectory in the years ahead. According to the Economic Survey 2024-25, Indias logistics sector is playing a pivotal role in boosting export competitiveness and enhancing the countrys economic might. It highlights the GoIs focus on improving logistics efficiency by streamlining the supply chains and accelerating digital transformation in the sector to navigate a complex global trade environment impacted by rising protectionism and supply chain disruptions.

The countrys clean energy transition gained momentum, with solar and wind power capacity additions rising 15.8% year-on-year in December 2024, underscoring strong progress in renewable energy adoption. The agriculture sector is expected to expand by 3.8% in FY 2025-26, supported by higher crop output and policy measures aimed at boosting farm productivity. Indias total exports reached a record high of US$

824.9 billion in FY 2024–25, marking a robust growth of 6.01% over US$ 778.1 billion in FY 2023–24. India ranks as the second largest exporter in the world in ‘telecommunications, computer, & information services, as per United Nations Conference on Trade and Development (UNCTAD). There has been a drastic reduction in smartphone imports, and 99% of the requirements are manufactured domestically as per the Economic Survey 2024-25. These achievements showcase Indias growing prowess as a global manufacturing powerhouse, and the logistics industry is a bedrock for this transformation by facilitating seamless movement of goods, lowering the costs, optimising inventory management, supporting production and thus, improving efficiency of the trade and commerce. While the global trade landscape remains volatile, India aims to secure its position as the fastest-growing major economy by crafting a trade strategy with a strong emphasis on logistics and supply chain optimisation. This involves negotiations for Free Trade Agreements (FTAs), efforts to diversify the export product basket, and a focused drive to explore new export markets. These measures are poised to strengthen domestic manufacturing while unlocking fresh growth opportunities for the logistics sector.

GROWTH DRIVERS OF THE INDIAN ECONOMY

Indias growth trajectory continues to remain robust, with the Second Advance Estimates of Annual Gross Domestic Product projecting a GDP growth rate of 6.5% for FY 2024–25. Echoing this optimism, the International Monetary Fund (IMF), in its January 2025 World Economic Outlook Update, also forecasts Indias GDP to grow at a steady 6.5% in both 2025 and 2026. This sustained momentum reflects the enduring strength and resilience of the Indian economy, underpinned by key structural drivers outlined below.

Increased Allocation for Infrastructure Development

Infrastructure development serves as a vital engine for accelerating a nations economic growth, and this is clearly evidentinIndia.Demonstratingfiscalprudence,theGovernment has marginally reduced the fiscal deficit to 4.77% of GDP for FY 2024–25, down from the revised estimate of 4.84%, as per data released by the Controller General of Accounts (CGA). In the Union Budget 2025–26, capital expenditure has been pegged at 11.21 lakh crore, up from 11.11 lakh crore in the previous year, representing 3.1% of GDP. Moreover, capital expenditure on key infrastructure sectors has grown at 38.8% from FY20 to FY25. This planned outlay shall augment Indias revenue-generating capability.

Source: The Reserve Bank of India Bulletin, March 2025

Stable Employment and Consumption Levels in the Country

The Economic Survey, released by the Ministry of Finance in January 2025, highlights continued strength in employment levels, driven by post-pandemic recovery. The unemployment rate for individuals aged 15 and above declined steadily from 6% in 2017-18 to 3.2% in 2023-24, reflecting improved labour market conditions. Moreover, Private Final Consumption Expenditure (PFCE) is projected to grow at a robust 7.6% in FY 2024-25, accelerating from the 5.6% growth recorded in FY 2023-24, driven by improving consumer sentiment and sustained economic momentum, while the Gross Fixed Capital Formation (GFCF) remains stable.

Source: Economic Survey, 2024-25

Sustained FDI Flows and Sufficient Forex Reserves

Gross FDI inflows in India surged 17.9% on a year-on-year basis, rising from $ 47.2 Billion in the first eight months of FY24 to US$ 55.6 Billion in the same period of FY25, reflecting sustained investor confidence in Indias growth potential. Indias foreign exchange reserves stood at US$ 676.26 billion as of 04 April, 2025, being able to cover 10.9 months of imports and nearly 90% of the countrys external debt, reinforcing macroeconomic stability.

Stable Growth in the Manufacturing Sector

As per the Economic Survey 2024-25, the manufacturing sector in India registered muted, yet steady growth, despite strong global headwinds, as evidenced by the monthly manufacturing Purchasing Managers Index (PMI) reports. Challenges may compound in the coming couple of quarters due to muted consumer sentiment, which has already led to a slowdown in discretionary spending. This has impacted volumes across segments, especially for the logistics sector resulting in subdued freight movement and lower asset utilisation levels. However, in the long term, the growth in manufacturing leads to an increased demand for the logistics sector, thereby paving the way for stronger growth path in the present as well as the upcoming fiscal years.

Robust Tax Revenues for the GOI

During April–January, tax revenue trends showed mixed performance. While income tax and GST collections remained strong, corporation tax saw a marginal decline. Customs duties recorded a sharp rise, indicating improved trade activity, whereas union excise duties continued to contract, though at a slower pace. Overall, indirect taxes gained momentum, but the moderation in direct tax growth points to an uneven recovery across revenue streams.

Tax Revenue Growth during April-January

IndiaAI Mission

The GoI approved an allocation of over 10,300 Crores for the IndiaAI Mission, marking a major push to strengthen Indias AI ecosystem. Planned over next five years, this investment will support key initiatives such as IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI. The initiative will be implemented through a public-private partnership model, with the goal of accelerating innovation and building a robust AI ecosystem in the country. As the country strengthens and advances its artificial intelligence (AI) capabilities, logistics seems to leverage more of such capabilities to enhance its competitive advantage against the global peers by streamlining its processes, reducing the turnaround time and lowering the overall costs.

Bhashini Initiative

Bhashini is revolutionising access to digital services by eliminating language barriers. Leveraging advanced AI models and a ‘Voice-First approach, it enables citizens to access government services in over 22 Indian languages. This inclusive platform is particularly impactful in rural and underserved regions, helping bridge digital, literacy and language divides.

In collaboration with over 50 ministries, startups, and private sector partners, Bhashini is driving the co-creation of innovative AI solutions, empowering every citizen to participate in Indias digital economy seamlessly. For a sector like logistics that reaches and employs masses, even from the remotest corner of the country, this initiative brings the ability to connect with and tackle issues in their own language, which is a huge productivity enhancer.

In a nutshell, it can be said that the economic progress so far in FY 2024-25 has been resilient and has stayed on course, while the outlook for FY 2025-26 looks balanced with a hint of caution to be adopted on account of global macroeconomic turbulence. Achieving the vision of Viksit Bharat by 2047, the Government shall have to fire up the domestic growth engines in the form of the ‘Make in India policy and enhance the ease of doing business. Investments in the wide-scale adoption of AI and upskilling its humongous talent pool shall also be integral to developing the competitive advantage on a global scale. The Government of Indias continued emphasis on capital expenditure, coupled with rapid strides in physical and digital infrastructure, growing export momentum, and enhanced multimodal connectivity, is catalysing robust growth in the logistics sector. These strategic developments are reinforcing the sectors pivotal role in positioning India as a rising economic superpower.

INDIAN LOGISTICS 2025: INDUSTRY OUTLOOK

India has uncovered its indomitable spirit of self-reliance under the ‘Atmanirbhar Bharat or ‘Self-Reliant India campaign and seeks to elevate the repositories of its domestic skills and entrepreneurship under the ‘Make in India Programme. The ultimate objective of these endeavours is to strike the ambitious vision of becoming a US$ 5 Trillion economy by 2027. The logistics sector lies at the heart of these efforts, building bridges amongst all the critical components of this vision, viz. businesses, masses and government. Enabling seamless transfer of goods and services, tools and technology within the nation and across the borders, a well-developed, coordinated and technologically sophisticated logistics sector is of paramount importance to this nation.

Sources: National Highways Hi-Speed Corridors & MM Logistics Parks, Railways, Waterways, Airways, Cargo Handling Capacity

Indias logistics sector forms a critical backbone of the national economy, contributing nearly 12% to 14% to the GDP and generating employment for over 22 million individuals. Encompassing a wide spectrum of services—including transportation, warehousing, packaging, labelling, and inventory management—the sector is also expected to witness a CAGR of 8.8% by FY 2029. The Express Delivery market is projected to grow at a CAGR of 12.41% between FY2024 and FY2031, expanding from US$ 15.38 Billion in FY2024 to an estimated US$ 39.21 Billion by FY2032 due to a notable rise in demand for advanced logistics and delivery solutions. Additionally, a wave of technology-driven startups is redefining operational efficiencies through digital innovation. With India emerging as a global manufacturing hub, the demand for integrated, high-performance logistics solutions to support domestic production and export activities is accelerating at an unprecedented pace.

Riding the growth wave of technological innovations, newer trading routes and redesigned supply chain. The logistics and freight sector in India is projected to grow at a CAGR of 8.8% witnessing robust growth over the coming years. The key growth enablers for unlocking this tremendous potential shall be the structural reforms, heightened government expenditure, infrastructure development, creation of new transport networks, industrial corridors and smart cities. Moreover, the manufacturing sector is set to witness heightened activity bolstered by various government incentive schemes such as Production Linked Incentive schemes (PLIs), and improved last-mile connectivity in tier II and tier III cities of India. These shall further propel the demand for the logistics sector to newer heights. At present, the warehousing and logistics sector contributes 12%-14% to Indias GDP and is expanding rapidly to keep pace with the ballooning growth pie. With a focus on enhancing efficiency and infrastructure for the logistics industry, India aims to secure a position among the top 25 countries on the World Banks Logistics Performance Index (LPI) by 2030, improving from its current ranking at 38th position.

COMMENDING THE MILESTONES

While India nurtures the vision of Viksit Bharat @ 2047, the logistics sector moves at an accelerated pace with some milestone achievements on the way to contributing to realising this dream.

GROWTH DRIVERS FOR INDIAN LOGISTICS

Marching ahead on a strong growth trajectory, the pace of the logistics sector development is further bolstered by the following enablers which enhance its strategic advantage and lead to value creation for the industry participants and the nation at large alike.

Establishing India as a Manufacturing Powerhouse

‘Make in India vision, the global shift towards the ‘China Plus One strategy in the post-COVID-19 era and the promulgation of various PLI schemes under the ‘Make in India initiative have prepared a robust growth highway for the Indian manufacturing sector. An ambitious goal of increasing manufacturings contribution to 21% of GVA by FY 2031-32 from current levels of 14% is set to fuel a sharp rise in demand for efficient logistics solutions.

Progressive Policy Environment

Through multiple steps towards executing transformative policies and reforms, the Indian government is actively fostering an efficient, cost-effective, and globally competitive logistics sector. Infrastructure initiatives like Bharatmala Pariyojana, Sagarmala Programme, and Dedicated Freight Corridors, coupled with policy initiatives such as PM GatiShakti scheme and National Logistics Policy (NLP), are boosting the industry potential positively.

Bharat Trade Net (BTN)

The launch of BTN, a dedicated digital public infrastructure platform, marks a major leap forward in streamlining Indias international trade and logistics processes. By seamlessly connecting customs, DGFT, GSTN, banks, and exporters on a single digital platform, it promotes efficiencies and elevates the procedural aspects to match the global standards.

National Geospatial Mission

The Government has launched a 100 Crores National Geospatial Mission to develop foundational geospatial infrastructure and datasets. This initiative aims to modernise land records, support urban planning, and strengthen earth observation capabilities. Aligned with the PM Gati Shakti framework, the Mission will drive data-driven planning, enable efficient infrastructure development, and promote smarter decision-making across sectors.

Enhanced Multimodal Integration Across the States

Allocation of 1.5 Trillion in 50-year interest-free loans to states for infrastructure development is expected to significantly boost connectivity across road, rail, and port networks, thereby enhancing multimodal connectivity.

Transformation of Indian Railways

The Union Budget 2025–26 has provided a significant boost to Indian Railways, with a gross budgetary support of 2.52 Lakh Crores to enhance infrastructure, safety, and passenger experience nationwide. Indian Railways has become the worlds second-largest freight carrier as at the end of FY 2024–25, with cargo volume surpassing 1.61 billion tonnes. Looking ahead, the Government plans to develop a 7,000-km high-speed rail network by 2047, enabling trains to operate at speeds of 250 km/h, redefining the future of rail transport in India. Furthermore, the construction of Dedicated Freight Corridors (DFC) shall enable enhanced movement of Double Stack Container (DSC) trains, higher axle load trains, seamless connectivity to remote terrains and industries enroute.

Setting Up of Multi-Modal Logistics Parks

Spanning atleast 100 acres, the multi-modal logistics parks are envisaged to emerge as integrated hubs for the road, rail and air transportation, thereby optimising supply chain operations and reducing cost. With a 500 Billion investment across 35 strategic locations, these parks shall feature modern warehousing solutions, including mechanised warehouses and cold storage facilities, and offer critical services like customs clearance and quarantine zones across metro and tier II and III cities.

Driving Growth for Exports

Exports have been identified as the fourth key engine of growth, with the government launching an Export Promotion Mission jointly led by the Ministries of Commerce, MSME, and Finance. This initiative aims to enable MSMEs to access and expand in global markets. To support this, infrastructure and warehousing facilities for air cargo—especially for high-value perishable horticultural produce—will be upgraded to enhance efficiency and competitiveness.

Accelerated Technology Adoption

Increasing adoption of the latest technologies such as Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), and Robotics has completely transformed the efficiency of the logistics industry, enabling it to render bespoke solutions such as real-time tracking of sensitive cargo and route optimisation for a wide array of clientele and higher client satisfaction. AI-driven algorithms and ML models enhance the transparency and efficacy of the business operations while optimising resources and minimising wastage.

Tax Benefits for the Logistics industry Participants

Several tax incentives have been awarded under the Union Budget 2025-26 to boost the logistics sector. These include simplifying the GST input tax credit process, reducing the compliance burden for service providers. Certain logistics services have also been exempted from indirect taxes, helping small and medium enterprises improve their cash flow. Additionally, lower import duties on electric trucks, hydrogen-powered vehicles, and EV batteries are encouraging the adoption of sustainable logistics solutions.

GOVERNMENT INITIATIVES

As rightly identified by the Government of India, there is a huge scope for efficiency improvement in the logistics sector in India. With the government policy initiatives such as easing of FDI norms, GST Implementation, increasing globalisation, positive changes in the regulatory policies, and government initiatives such as "Sagarmala", "Make in India", and "Gati Shakti", the sector is poised for transformation. Out of the total logistics cost of US$ 150 Billion in India, almost 99% is accounted for by the unorganised sector (such as owners of less than 5 trucks, small warehouse operators, freight forwarders, etc.), and rest amounting to slightly more than 1%, i.e. around US$ 1.5 Billion is contributed by the organised sector. If this cost can be brought down from 14% to 9% of the GDP, then the resultant savings of US$ 50 Billion will significantly enhance Indias competitive edge in international trade.

Announcements in Budget 2025-26

Logistics, considered as the backbone of Indian economic growth, has progressively been garnering increased budgetary allocations to fulfil its potential of becoming a globally competitive and integrated ecosystem. Accordingly, in the Union Budget 2025-26, the Ministry of Finance has identified 434 projects under the PM Gati Shakti National Master Plan to boost connectivity and logistics efficiency across roads, railways, and ports. Additionally, there has been emphasis on digital integration by strengthening PM Gati Shaktis digital infrastructure and data mapping, enabling better planning, real-time tracking, and operational efficiency across the logistics sector.

Union Budget 2025–26 eases GST norms, boosts SME liquidity, and lowers import duties on EVs and green logistics equipment to drive sustainable growth. A modified UDAN scheme has been announced to enhance regional connectivity by introducing 120 new destinations and targeting the carriage of four Crore passengers over the next 10 years.

PM Gati Shakti and National Master Plan

Launched in October 2021, the PM GatiShakti National Master Plan (NMP) addresses the need across various economic zones in the nation. This plan identifies seven engines for economic growth and aims to promote sustainable development through logistics synergy, faster implementation, adoption of innovative technology and financing. Onboarding 44 Central Ministries and 36 States/UTs, a total of 1,614 data layers have been integrated under this project. 208 big-ticket infrastructure projects worth 15.39 Lakhs Crore adhering to PM Gati Shakti principles have been assessed.

National Logistics Policy (NLP) and Comprehensive Logistics Action Plan (CLAP)

Launched in September 2022 to complement the PM GatiShakti National Master Plan (NMP), the National Logistics Policy (NLP) addresses the soft infrastructure and logistics sector development. Its scope extends to encompass process reforms, improvements in logistics services, digitisation, and skilled human resource development in the logistics sector. The targets of the NLP are to reduce the cost of logistics in India, improve Indias ranking in the Logistics Performance Index ranking and create a supportive ecosystem for an efficient logistics industry. The National Logistics Policy (NLP) outlines three core targets to realise its long-term vision: (i) Reduce logistics costs in India to align with global benchmarks by 2030; (ii) Improve Indias ranking in the World Banks Logistics Performance Index, targeting a position among the top 25 countries by 2030; and (iii) Establish a data-driven decision support system to build an efficient and responsive logistics ecosystem.

Logistics Efficiency Enhancement Programme (LEEP)

LEEP is designed to enhance freight transport efficiency by optimising costs, reducing transportation time, and improving logistics practices. Through infrastructure advancements such as the setting up of multimodal logistics parks, technology integration, and process interventions, LEEP aims to streamline goods transfer and tracking, ensuring a more seamless and cost-effective logistics ecosystem.

Trade Infrastructure for Export Scheme (TIES)

TIES aims to strengthen export-related infrastructure by providing financial assistance to Central and State Government agencies. The scheme supports the development of key facilities such as cold chains, Special Economic Zones (SEZs), inland and air cargo terminals, and other export-linked infrastructure.

National Geospatial Mission

A 100 Crore initiative to modernise land records and boost infrastructure planning, aligned with PM Gati Shakti for data-driven development.

Unified Logistics Interface Platform (ULIP)

ULIP, a national data-based platform, coordinates digital systems of different Ministries/agencies in the Government. It seeks to provide a unified interface for users trading goods across multiple modes of transport. This platform enables startups and private players to develop use cases that address challenges within the logistics sector. By signing Non-Disclosure Agreements (NDAs) and completing the due diligence process, the users can access data through API integration, allowing them to create applications and solutions that enhance logistics efficiency and transparency. As of March 2025, it has reached a historic milestone by recording 100 Crore API transactions.

Parivahan Sewa

Parivahan Sewa is a unified government platform offering end-to-end vehicle-related services across India, aimed at enhancing convenience, transparency, and operational efficiency. It covers essential functions such as driving licenses, vehicle registration, permits, and tax payments with reduced paperwork and 24*7 digital access.

Logistics Data Bank (LDB)

LDB is an EXIM cargo track-and-trace application. By integrating data from multiple logistics agencies, LDB provides real-time information within a single window and a mobile application. Using the latest technologies such as Radio Frequency Identification (RFID), Internet of Things (IoT), Big Data and Cloud-based solutions, it enables real-time tracking of EXIM container movement in India.

Urban Infrastructure Development Fund (UIDF)

The Indian government has set up the Urban Infrastructure Development Fund (UIDF) to help state governments and municipal corporations implement urban infrastructure projects. This fund shall be managed by the National Housing Bank and shall extend assistance through priority sector lending shortfall in Tier II and Tier III cities.

Bharatmala

The Bharatmala Pariyojana is a broad-based initiative launched by the Government of India in 2017 to develop about 26,000 km length of Economic Corridors, along with Golden Quadrilateral (GQ) and North-South and East-West (NS-EW) Corridors to carry a majority of the Freight Traffic on roads. A total of 18,926 km of roads have been completed under the project by November 2024. A network of 35 Multimodal Logistics Parks is planned to be developed as part of Bharatmala Pariyojana, with a total investment of about 46,000 Crore, which is estimated to handle around 700 million metric tonnes of cargo.

Pradhan Mantri Grameen Sadak Yojana

The Pradhan Mantri Grameen Sadak Yojana (PMGSY), launched by the Government in 2000, aims to build connectivity to the nations unconnected areas as part of a poverty reduction strategy. In FY 2006-2007, 107,370 km of roads were built under the PMGSY, with an outlay of 10,769 Crore. In FY 2014-15, 419,358 km of roads were completed, and the expenditure amounted to 130,149 Crore. In FY 2024-25, building of 771,950 km worth of roads was accomplished with the total expenditure of 331,584 Crore. Due to this policy endeavour at the behest of the GoI, a sustainable management of the rural roads network and connectivity is ensured through high-end technical and management standards, further bolstering last-mile connectivity expanding the reach of logistics.

Sagarmala

The Ministry of Ports, Shipping and Waterways flagship programme aims to reduce logistics costs by promoting waterways-based multimodal transport. Out of 171 infrastructure and connectivity projects in 12 coastal states and UTs, 49 have been completed, including 18 key port modernisation and connectivity projects.

Rail Green Points

Indian Railways launched Rail Green Points to promote eco-friendly freight movement by rewarding customers with carbon-saving points under the Freight Operations Information System (FOIS). These points are credited upon booking and supported with downloadable certificates, encouraging sustainable logistics choices.

Freight Green House Gas (GHG) Calculator

The Freight Greenhouse Gas Calculator is a simple, easy-to-use, online tool developed by the Logistics Division of DPIIT, Ministry of Commerce and Industry, to foster sustainable freight transport practices. Designed to promote low-carbon transportation, it enables users to calculate and compare both the total cost and greenhouse gas emissions across different freight modes—road, rail, inland waterways, and air—for a given Origin-Destination pair. By offering insights into the financial and environmental implications of each mode, the tool encourages a responsible and sustainable logistics choice basis financial and environmental cost estimate. It serves as a valuable resource for both public and private sector enterprises in advancing green logistics across India.

National Green Hydrogen Mission

National Green Hydrogen Mission has been launched with an outlay of 19,744 Crore from FY 2023-24 to FY 2029-30 to project hydrogen as the fuel of the future. It aims to endorse sustainability across the infrastructure, logistics and transportation network. An agreement is signed between Green Hydrogen NGEL and SMP, Kolkata, to set up a Green Hydrogen Hub in Kolkata. Moreover, a Memorandum of Understanding (MoU) has been signed with Saudi Arabia for a green hydrogen supply chain and power grid interconnection. This project seeks to extend Indias green hydrogen production capacity to reach 5 MMT per annum and reduce 1 Lakhs Crore worth of fossil fuel imports while achieving the reduction of 50 MMT per annum in carbon emissions.

TECHNOLOGICAL LANDSCAPE OF LOGISTICS

Indias logistics sector is poised for a transformative shift, propelled by the growing demand for faster deliveries, real-time visibility, and integrated supply chain solutions. By 2025, technology will further revolutionise supply chain and logistics, enhancing efficiency, transparency, and resilience. To survive and thrive in this intensely competitive landscape, businesses will need to deploy agility and speed in their operations. Leveraging technology and adopting continuous innovation can be the answer to tackling many of the evolving challenges posed by a constantly shifting global political and socio-economic landscape.

Innovations dominating the industry scenario

Internet of Things (IoT) Devices and Predictive Artificial Intelligence and Machine Learning (AI Analytics and ML)

These devices shall continue to redefine supply chain AI and ML have been superior productivity enhancers visibility and efficiency. They shall be integral to the across industries. In express logistics, many challenges business endeavours to mitigate risks such as stockouts, such as real-time tracking of the environment, scanning delays or equipment failures. IoT devices such as GPS the routes for safe delivery of sensitive cargo, and smooth trackers and RFID tags collect valuable data to enable procurement can be safely and efficiently tackled by route optimisation, tracking deliveries and shipments, leveraging the dynamic problem-solving and rapid self-and enhanced operational transparency. Highly sensitive learning capabilities of AI and ML. ships comprising pharmaceutical or chemical products can be monitored round-the-clock with IoT sensors.

Automated Warehouses

The rapid pace of transformation in the Indian industrial Blockchain and manufacturing landscape is driving the adoption of Blockchain is a decentralised, digital and transparent AI-powered automation and hyper-personalisation in ledger system that records transactions securely and warehousing. To meet compressed delivery timelines, protects against tampering. Traceable and paperless complex route-scheduling tasks and dynamic consumer logistics operations with real-time visibility can be built expectations, businesses are leveraging tech-enabled with this technology. Blockchain integration will enhance micro-fulfilment centres and predictive inventory data security in emissions reporting and compliance, management, enhancing agility, speed, and overall fostering a more sustainable future. customer experience.

Advanced Application Programming Interface

(APIs) and Automation Barcoding, Radio Frequency Identification (RFID), Hand-held Terminals and GPS Tech support

Advanced APIs shall play a pivotal role in building a shared, interconnected and robust digital infrastructure, These technologies facilitate accurate tracking, inventory enhancing data sharing and functionality. Especially, management and route optimisation across the supply the APIs used to connect multiple apps in a centralised chain. While barcoding ensures efficient and accurate operating environment multiply the efficiency manifold identification of shipments, hand-held terminals are and seamlessly connect all the stakeholders such as the portable devices for on-the-go scanning and tracking. Government, service providers and end-customers in a coherent ecosystem.

Cloud Computing Automated Sorting and Robotics

Cloud computing has emerged as a game-changer for One of the leading cutting-edge technologies making a the logistics sector, enabling the development of an transformative impact on the warehousing, logistics and interconnected digital ecosystem that enhances visibility, supply chain management functions is automated sorting. collaboration, and agility across the supply chain. Its key Deploying this technology confers unprecedented benefits strength lies in flexibility and adaptability—the ability to such as a reduction in parcel handling and vehicle halting quickly adjust computing, storage, and network resources times, and increased operational efficiency. to meet frequently changing demand. This allows logistics Logistics robots are revolutionising the supply chain by providers to access real-time data, streamline operations, delivering unmatched uptime as compared to manual and anticipate disruptions across the supply chain. By labour. The primary application of robotics in the facilitating seamless, two-way information exchange logistics domain consists of mobile Automated Guided with supply chain partners, cloud-based systems improve Vehicles (AGVs), which are increasingly deployed across decision-making, support faster response times, and warehouses and storage hubs to enable seamless, strengthen overall supply chain resilience. round-the-clock movement of goods. Navigating through predefined routes with precision, AGVs automate the transport of products within the facility, thereby streamlining workflows, minimising human error, and Chatbots lowering logistics costs. As companies strive for higher throughput and efficiency, the integration of robotics in Chatbots, automated email responses and self-service logistics is emerging as a strategic differentiator, unlocking portals are highly used customer service automation the benefits of productivity, scalability, and profitability. for reducing the turnaround time for customer inquiries, grievance handling, shipment tracking and other real-time updates.

CHALLENGES FACED BY THE INDIAN LOGISTICS INDUSTRY

While India strives to achieve its dream of becoming a US$ 5 Trillion economy by 2027, Logistics shall play a pivotal role in this transformation. From seamless transfer of goods and services from one corner of the vast geographical terrain of the country to the other to seamlessly connecting industries, government and masses, Logistics performs a crucial task of value creation, transfer and enhancement throughout the nation and across the border. However, the path to realising its full potential is fraught with multiple challenges, some of them structural to the national economy and some percolating from the global economic stage.

Rising Costs Due to Geopolitical Conflicts and Tariff Tussles

The overall operational costs of logistics operations around the world have seen some wide fluctuations, especially on the upside, due to escalating geopolitical strife on some important trade routes and the tariff wars between trading nations. This situation asks for reorganisation of the supply chain and exploring alternative routes, which raises the cost burden on the industry participants.

Fluctuations in Oil Prices

Brent crude prices, a key benchmark for global oil rates, settled at US$ 74 per barrel after fluctuating between US$ 90 and US$ 69 during the year. These shifts—driven by changing geopolitical, economic, and trade conditions—have made planning difficult and led to unexpected cost impacts.

Unorganised Supply Chain

The Indian logistics landscape is dominated by several small, unorganised players operating on a local scale. This often leads to a lack of coordination, awareness about larger issues pertaining to the industry or unwillingness to implement the latest technology, all resulting in suboptimal business operations and wastage of resources.

Complex Regulatory Ecosystem

India, being the largest democracy in the world, boasts one of the best regulatory environments in the world, run by its top-notch bureaucrats. However, multiple rules and regulations of different departments such as taxation, pollution control, roadways, shipping, railways and commerce make the governance framework a very complex and often tedious, time-consuming and expensive labyrinth to navigate.

Shortage of Skilled Talent Pool

Indian logistics terrain is a mix of urban, semi-urban and rural areas where the literacy and skills gap amongst the industry personnel is wide. Lack of awareness of safety protocols and legal requirements further adds to the hindrances faced by the logistics functions, making the adoption of standardised operating procedures, latest technologies and adherence to laws difficult and often inadequate.

Safety Risks

Logisticalmovementofcargobetweenthedestinationsexposes it not only to the risks such as theft, pilferage, and vandalism on the ground but also to the new-fangled sophisticated cyber-attacks. As the industry is progressively adopting the latest technological innovations for optimising routes, tracking the shipments and regulating emissions among other manifold purposes, the risks of systems malfunctioning or falling prey to organised cyber-attacks are intensifying.

Higher Reliance on the Road Network

As freight movement by road constitutes around 60% of the total freight movement in India, the condition and connectivity of this mode of transport have a larger say in the efficiency of logistics. As many areas, especially in the rural hinterlands of India, are still lacking in road connectivity, the last-mile delivery in such areas is fraught with challenges of exorbitant costs and inordinate delays. Though the road network is comparatively better in Tier I and II cities, the problems of traffic congestion result in delays.

Complexities of Last-Mile Distribution

India is a diverse country with high population density, diverse demography, an inadequate road network, and largely unplanned civic infrastructure. These challenges further compound the task of devising an efficient and optimum last-mile connectivity and distribution network, which is crucial for the successful client services in logistics and express delivery.

Higher Taxes and Compliance Burden

The taxation system in India, especially the indirect taxes, is intricate and possesses multiple layers of disclosure, payments and documentation. This becomes time-consuming and involves excessive expenditure for procedural compliance, in addition to the outlay for taxation. Moreover, India, being a geographically vast and culturally diverse country, requires a complex system of laws and regulations to control even some simpler, routine administrative tasks. Higher numbers of regulations lead to higher compliance costs, confusion, delays and discrepancies; reducing the overall efficiency of the sector, such as logistics, which has a nationwide reach.

EXPRESS DELIVERY INDUSTRY IN INDIA

As India seeks to join the ranks of developed nations with an economy worth US$ 55 Trillion by 2047, the logistics industry shall emerge as a critical enabler of this transformation. With the surge in economic activity, rising national income, and the consumption class, the consumption patterns are also undergoing a dynamic shift.

Source: Delivering the future, Redseer strategy consultants, February 2025

This change, gaining further impetus from the policy and infrastructural reforms by the government, increasing FDI flows, and increasing technological innovation, paves the way for a more evolved and bespoke logistics function. India, due to its inherently diverse culture, is a large, heterogeneous consumption market calling for a transformational shift in the logistics sector. Here lies the advent of Express logistics, which essentially involves moving beyond traditional courier services to a hyperlocal-driven model. With the sustained growth of the manufacturing sector and exports, logistics networks must expand beyond metro cities to tap into Tier 2 and Tier 3 markets to keep pace with this rapid rate of industrialisation. The future of scalability lies in localised supply chains, automated sorting hubs, and multimodal logistics, ensuring faster deliveries, cost efficiencies, and seamless last-mile connectivity. As consumer expectations evolve, logistics providers must adapt swiftly, leveraging technology, infrastructure, and strategic partnerships to stay ahead in this high-growth landscape. This mandate or service gap is something Express delivery logistics can fill.

The express logistics industry plays a critical role in enabling time-sensitive deliveries through seamless door-to-door connectivity across domestic and international markets, supported by real-time shipment tracking. The Indian express delivery market is estimated to register a CAGR of 12.41% during the period 2024-2031, growing from $ 15.38 Billion in FY2024 to $ 39.21 Billion in FY2032. In India, surface express logistics remains the dominant mode of transport, followed by air express services. The sector has witnessed significant transformation with the Governments continued infrastructure development and the implementation of the Goods and Services Tax (GST), which have further streamlined operations and enhanced efficiency. As per the India Express Logistics Market Overview, FY 2027-28, the express logistics market is segmented into categories: Surface Express, Air Express and Rail Express. Surface Express holds the largest market share, followed by air and rail parcel services. Indias 2.29 trillion cold chain market is growing rapidly, driven by food, pharma, and exports. Government support and tech adoption are expanding storage and transport for temperature-controlled logistics.

Indias Express Surface logistics market has emerged as the backbone of the countrys express delivery ecosystem, accounting for the largest share among all modes including air, rail, and cold chain. Surface express services—largely facilitated through road transport and increasingly integrated with rail networks—offer a cost-effective and scalable solution for time-bound deliveries across both urban and rural India. The growth of national highways under initiatives like Bharatmala and the development of Multi-Modal Logistics Parks are further accelerating efficiency in this segment., reinforcing Indias position as one of the fastest-growing logistics hubs globally. With this exponential rise in shipment volumes, the express logistics sector is set to play a pivotal role in enhancing efficiency, reducing costs, and meeting the evolving demands of businesses and consumers alike.

(Source: a graphical representation basis a report titled ‘India Express Logistics Market Overview, 2022-28)

TCI Express Limited remains at the forefront of Indias express delivery revolution with an extensive network and unwavering reliability, backed by cutting-edge technology and streamlined operations. With a strong foothold in the B2B express logistics sector, the company provides seamless, time-sensitive deliveries across India to a widely diversified client base spanning high-growth industries—including textiles, pharmaceuticals, automotive, engineering, and electronics. This particular segment of the express logistics domain, i.e. B2B Express Delivery, as per an industry research report by Ambit in December 2023, is known for its steady revenue growth and profitability. As per this report, the B2B express industry revenues grew at a CAGR of ~13% over FY17 to FY22. Sharing a proud lineage from Transport Corporation of India, one of the leading logistics players in India, and as a critical participant in the express delivery value chain, the company boasts of its presence across all major business divisions within the express logistics gamut.

HIGH-GROWTH SECTORS POWERING THE EXPRESS LOGISTICS INDUSTRY

In FY 2024–25, Indias express logistics sector witnessed consistent momentum, supported by modest gorowth across key industries. TCI Express continues to strengthen its leadership in the B2B logistics space by catering to the evolving needs of these high-potential sectors through agile, tech-driven, and reliable express delivery solutions. TCI Express remains at the forefront of enabling growth across these sectors by offering customised express delivery solutions. With a deep understanding of industry-specific needs, the Company continues to adapt, innovate, and lead in Indias fast-evolving B2B logistics ecosystem.

Automotive & Auto Components

India continues to advance at an accelerated pace in the global automotive landscape, driven by strong domestic demand, robust export potential, and rapid strides in electrification. In December 2024 alone, total production across passenger vehicles, three-wheelers, two-wheelers, and quadricycles stood at 19.21 Lakhs units, highlighting the sectors sustained momentum. For FY 2024-25, cumulative production reached 3.10 Crore units, with two-wheelers and passenger vehicles contributing 76.96% and 16.31%, respectively. The Indian passenger car market, valued at US$ 32.70 Billion in 2021, is projected to grow at a CAGR of 9%, reaching US$ 54.84 Billion by 2027. On the global front, the electric vehicle (EV) market, estimated at

US$ 250 Billion in 2021, is expected to expand fivefold to US$ 1,318 Billion by 2028, underlining the transformative potential of sustainable mobility. India achieved a notable milestone in CY24 with EV sales crossing one Lakh units, up from 82,688 in CY23, reflecting a strong uptick in consumer adoption. Similarly, the Indian tyre industry was valued at US$ 12.84 Billion in 2024 and is projected to grow at a CAGR of 8.21%, reaching US$ 29.16 Billion by 2030. This robust expansion is driven by rising vehicle production, increasing income levels, and growing demand for personal and commercial mobility across the country. The expanding OEM and component ecosystem calls for time-sensitive deliveries, positioning express logistics as a critical enabler.

Textiles & Lifestyle

India is the worlds second-largest producer of textiles and garments and the third-largest exporter globally, contributing 2.3% to GDP, 13% to industrial output, and 10.5% to total exports. Ready-Made Garments of all Textiles exports increased by 10.03% from US$ 14.53 Billion in FY 2023-24 (April-March) to US$ 15.99 Billion in FY 2024-25 (April-March). With a target of US$ 100 Billion in exports by FY 2029-30, the sector is poised to double its GDP contribution to 5%. The domestic textile and apparel market is expected to grow at a 10% CAGR, reaching US$ 350 Billion by 2030, supported by strong global demand and a workforce of 45 Million. Indias cosmetics industry is undergoing rapid transformation, expected to grow at a 25% CAGR, reaching US$ 20 Billion by 2025. With growing e-commerce penetration and rising urban demand, India is set to contribute 5% to the global cosmetics market, entering the top five global markets by revenue. The industry benefits from increasing internet access, allowing consumers from metros to rural areas to access a wide range of products. Organised retail and rising consumer spending are increasing dependency on time-sensitive delivery models.

Express logistics plays a key role in ensuring seasonal, fashion-led merchandise reaches the shelves on time, helping brands remain agile and responsive to demand shifts.

Consumer Durables

Indias Consumer Durables sector continues to experience strong growth momentum, bolstered by rising disposable incomes, rapid urbanisation, and technological innovation in India. In FY 2024–25 (April–March), electronic goods exports rose sharply by 32.47%, reaching US$ 38.58 billion, up from US$ 29.12 billion in FY 2023–24. With this growth trajectory, India is targeting US$ 300 Billion in electronics manufacturing and US$ 120 Billion in electronics exports by FY 2025-26. The Indian Appliances and Consumer Electronics (ACE) market is projected to double by 2025, reaching approximately 1.48 lakh crore (US$ 21.18 Billion). Smartphone exports surged by 55% in FY 2024–25, reaching US$ 24.14 billion, compared to US$ 15.57 billion in FY 2023–24 and US\$ 10.96 billion in FY 2022–23. The white goods segment, including air conditioners and refrigerators, is also expanding rapidly, with the market expected to exceed US$ 21 Billion by FY2024-25, growing at a CAGR of 11%. The room air conditioner segment alone is projected to reach 50,000 Crore (US$ 5.6 Billion) by FY 2028-

29. With domestic manufacturing contributing nearly US$ 4.6 Billion, the sector stands at the intersection of the Make in India drive and a booming domestic demand cycle—positioning it as a critical pillar of Indias economic and export growth story. Government-led initiatives such as the PLI scheme, UJALA, and SLNP are supporting domestic production and boosting express logistics needs for last-mile efficiency and dealer network replenishment.

Pharmaceuticals & Cold Chain

India has established itself as the largest global provider of generic drugs, affordable vaccines and medications. The countrys pharmaceutical industry ranks third in the world by volume and 14th by value, contributing approximately 1.72% to the national GDP. With a strong foundation in generic drugs, vaccines, OTC medications, biosimilars, biologics, and contract manufacturing, the sector has grown at a CAGR of 9.43% over the past nine years. India supplies over 50% of the global demand for various vaccines and accounts for 20% of global exports of generic drugs, reinforcing its reputation as the "Pharmacy of the World." As of FY 2024-25, the Indian pharmaceutical industry is valued at US$ 50 Billion, with exports contributing over US$ 25 Billion. Market size is expected to reach US$ 130 Billion by 2030, and US$ 450 Billion by 2047, showcasing strong long-term growth potential. The Union Budget for FY 2025–26 allocated

5,268.72 Crore (US$ 602.9 Million) to the Department of Pharmaceuticals, which highlights a 28.8% increase over the previous year. Of this, 1,000 Crore (US$ 120 Million) has been earmarked for the promotion of bulk drug parks, supporting infrastructure development and self-reliance in key raw materials. Indias pharma sector continues to evolve as a critical contributor to global healthcare while playing a central role in the countrys economic and export growth trajectory. Indias cold chain market is valued at US$ 10.6 Billion in FY 2023-24 and projected to grow at a CAGR of 23% between 2024 and 2030. This strong growth is driven by the rising demand for perishable goods, expanding retail networks, and government investments in logistics infrastructure. Increasing requirements for reliable transport and storage solutions in the food and pharmaceutical sectors continue to be key drivers. Metro cities like Mumbai, Delhi, and Bengaluru are central to this growth, owing to their dense industrial clusters, retail hubs, and high population bases. Their robust infrastructure and connectivity support efficient cold chain operations. However, the need to grow beyond these metro hubs and tap the growth potential for the sectors nationwide expansion, the demand for timely, temperature-controlled deliveries and logistics solutions is amplified.

Engineering Sector

Indias engineering sector continues to be a critical enabler for the countrys aspiration to become a global economic powerhouse. With a strong presence in exports, ranging from transport equipment and capital goods to castings, forgings, and fasteners, India is steadily expanding its footprint in global supply chains. The growing demand for semiconductors also positions the country to emerge as a future-ready player in high-tech manufacturing. The capital goods industry, a key enabler across engineering, infrastructure, and consumer sectors, contributed 12% to Indias manufacturing output and 1.9% to GDP, with a market size of 4.29 lakh crore in FY 2023-24. The sector represents 27% of industrial factories and accounts for 63% of foreign collaborations, underscoring its strategic significance. Indias electrical equipment market, the largest sub-segment, is projected to grow from US$ 52.98 Billion in 2022 to US$ 125 Billion by 2027, at a CAGR of 11.68%. Additionally, the Engineering R&D Services Market is poised to reach US$ 217.90 Billion by 2030, growing at a CAGR of 10.26%, driven by rising investments in innovation and product development. The construction equipment industry, a cornerstone of the Governments ‘Vision Plan 2030, is also expected to expand from US$ 7.91 Billion in 2025 to US$ 11.78 Billion by 2030 at a

Source: https://www.ibef.org/industry/indian-engineering-industry-analysis-

CAGR of 8.3%. As of FY 2024-25 (up to December), engineering goods exports stood at 7,61,343 Crore (US$ 87.22 Billion), contributing to nearly 25% of Indias total goods exports, reaffirming its status as one of the countrys top foreign exchange earners. Express logistics is critical to meet the sectors needs for efficient movement of capital equipment, tools, and industrial components.

Food Processing

Indias food processing sector has emerged as one of the key drivers of the nations economic growth, supported by progressive policy interventions and sustained government focus through the Ministry of Food Processing Industries (MoFPI). Between 2015 and 2022, the sector clocked an impressive average annual growth rate of 7.3%, contributing significantly to GDP, employment, and industrial investment. As of 2024, the sector accounts for approximately 8.80% of Gross Value Added (GVA) in Manufacturing and 8.39% in Agriculture, while also contributing 13% to Indias total exports and 6% to total industrial investment. Driven by rising urbanisation, a young population, and shifting consumption patterns, Indias food consumption is expected to reach US$ 1.2 trillion by FY 2025-26. The market size of the food processing sector is projected to more than double, from

26.49 Lakhs Crore (US$ 307 Billion) in 2023 to 60.40 Lakhs Crore (US$ 700 Billion) by 2030, as per the PHDCCI. Looking further ahead, the Viksit Bharat@2047 vision estimates a robust trajectory for the sector, with the market size forecast to reach US$ 1.1 trillion by FY 2034-35 and US$ 2.15 trillion by FY 2046-47. To catalyse this growth, the Government has launched the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), aimed at creating modern infrastructure and improving supply chain efficiency from farm to fork, thereby enhancing value addition and reducing wastage across the agri-food value chain. This increasing demand for timely, quality-driven food deliveries is creating strong tailwinds for express logistics providers.

Defence & Aerospace

Indias defence manufacturing ecosystem is undergoing a significant transformation, driven by a collaborative approach between the government and industry players. With growing national security measures and a push for indigenous innovation, the sector has emerged as a critical pillar of Indias economic and strategic growth. In the Union Budget 2025–26, the Ministry of Defence was allocated 6.81 Lakhs Crore (US$ 78.7 Billion), a 9.5% year-on-year increase, reinforcing the governments commitment to strengthening military capabilities. Of this, 1.80 Lakhs Crore (US$ 20.8 Billion) was earmarked for capital expenditure, including new acquisitions across weapons systems, aircraft, warships, and advanced military equipment. India recorded defence exports rising to an all-time high of 23,622 crore in FY 2024-25. With a target to scale domestic defence manufacturing to 3,00,000 Crore (US$ 36.1 Billion) and exports to 50,000 Crore (US$ 6.02 Billion) by FY 2028–29, the sector is poised for exponential expansion.

Driven by the ‘Aatmanirbhar Bharat vision, the government has targeted 70% self-reliance in weapon systems by 2027. Defence PSUs have accelerated indigenous production through strategic R&D and technology transfer. The Innovations for Defence Excellence (iDEX) initiative has become a launchpad for start-ups and MSMEs to co-develop next-gen defence technologies. With the Ministry of Defence estimating potential domestic contracts worth 4 Lakhs Crore (US$ 57.2 Billion) over the next 5–7 years, the Indian defence sector presents unprecedented opportunities for private players, global OEMs, and start-ups alike. This aligns with the long-term vision of establishing India as a leading global defence manufacturing hub. As demand for precision deliveries of high-value equipment and spare parts within the industry grows, express logistics will play an essential role in supporting operational efficiency and mission-readiness for this critical sector.

CHALLENGES AND OPPORTUNITIES FOR EXPRESS LOGISTICS IN INDIA

B2B logistics involves the seamless movement of goods and materials between businesses through multiple stages, including procurement, mode selection, scheduling, costing, packaging, storage, and timely delivery. In the express logistics segment characterised by high time-sensitivity, the ability to weave all these variables together seamlessly is critical, as many business organisations rely on robust B2B logistics frameworks to ensure operational continuity and deliver superior customer experiences.

However, the sector faces key challenges, high operating costs and infrastructure limitations within the country being the major amongst those. Additionally, as client businesses evolve, logistics partners must continuously adapt their services to meet niche, customised needs. This demands significant investments in technology, automation, and digital solutions, which can be cost-intensive and vulnerable to disruptions. B2B express logistics also involves large-volume shipments that typically require extensive documentation and regulatory compliance. Unlike B2C, the scale and complexity of B2B transactions make it more difficult to offer the same level of delivery convenience. Evolving tax structures, duties, and regulatory frameworks further add to operational complexity and may impact business agility. To remain competitive, B2B logistics providers must focus on innovation, infrastructure development, and digital transformation to align with changing client expectations and industry dynamics.

GLOBAL ECONOMIC OUTLOOK

The global economy, though facing geopolitical and tariff-related turmoils currently, is estimated to maintain a steady growth rate of 3.3% in both 2025 and 2026. Global inflation is likely to come down to 4.2% in 2025 and 3.5% in 2026, getting closer to what central banks are aiming for. This slowdown is expected to happen faster in advanced countries than in developing ones. In countries where inflationary pressures remain persistent, central banks are expected to adopt a more cautious approach to monetary easing and interest rate reduction. Energy commodity prices are projected to decline by 2.6% in 2025, primarily due to subdued demand from China and robust supply from OPEC+ and other oil-producing nations. India is expected to sustain its robust growth trajectory, with GDP growth forecast at a healthy 6.5% in both 2025 and 2026, consistent with earlier projections and aligned with the countrys long-term potential.

Fragmentation of the global economy due to trade tariffs and sanctions is a key concern being contemplated as a serious threat by many economies currently. Rising trade barriers could dampen global economic growth, disrupting supply chains and shall add to inflation, leading the Central Banks to adopt a stiffer monetary policy stance. This would in turn, lead to a higher interest environment, exacerbating the dovish consumer and investor sentiments, causing a further tumble in the stock markets around the globe.

On the other hand, considering a brighter scenario, the trade restriction currently being imposed may be renegotiated or lifted, causing the complete or partial removal of tariffs, bolstering economic growth and curbing inflation. The imposition of ‘reciprocal tariffs by the Trump Administration in the US upon their trading partners and subsequent declaration of 90 days pause till July 2025 on the same spell a huge relief to the emerging economies, including India, driven by rising exports to the US, despite the basic levy of 10% tariff still remaining constant.

Further, a peaceful resolution of conflicts in Europe and the

Middle East may reduce geopolitical uncertainty, strengthening business confidence, opening up the traditional shipping routes and fuelling investment. Moreover, a potential surplus in global oil supply could keep energy prices lower, enhancing economic sentiment, especially in several economies dependent on oil imports and suffering from fiscal deficit on account of rising oil prices. As it is observed, the policy interest rates have continued to decline across major economies, which is a beacon of hope for sustained economic progress amidst the current global economic turmoil. The above-mentioned factors have a positive bearing on the manufacturing as well as logistics domains business outlook, though there may be some short-term adverse implications because of the heavily interconnected nature of these global supply chain links. For the Indian logistics and supply chain management domain, this scenario unlocks opportunities to build newer trade links with global manufacturers and build a stronger and resilient logistics and supply chain management function within the country by proactively diversifying exports and striking trade deals with other countries.

GLOBAL LOGISTICS INDUSTRY AND FUTURE TRENDS

According to the Global Express Delivery Market report published in February 2025, the global express delivery market is currently valued at $ 303.2 Billion and is projected to register a CAGR of 5.6% to reach the valuation of $ 495.11 Billion during the report forecast period (2025–2032). This growth trajectory reflects rising demand for faster, more convenient delivery services and the evolving dynamics of global trade, especially in the post-COVID-19 pandemic world. The market is segmented by Destination (Domestic and International), Delivery Mode (Air Freight, Ground Transportation, Rail Freight, and Maritime Delivery), Package Type (Documents, Parcels, Freight, and Perishable Goods), Application (B2B and B2C), End-Use, and Region. North America, led by the United States, currently dominates the market. However, the Asia-Pacific (APAC) region, driven by China and India, is witnessing rapid expansion, fueled by the robust growth of manufacturing sectors and rising demand for cross-border logistics solutions in an increasingly globalised economy.

TRENDS TO GOVERN EXPRESS DELIVERY IN 2025

Agile solutions

In the face of wide-reaching global trade disruptions caused by tariff wars and geopolitical tensions, businesses shall be required to be nimble-footed and optimise their networks to ensure consistent services. High-powered data analytics and informed decision-making shall assume greater importance.

Sustainable outlook

A strong sustainability framework anchored in ESG standards is now central to modern supply chain strategies. Businesses are increasingly integrating low-carbon operations, circular models, and transparent reporting to build trust and drive responsible growth.

The next phase of logistics transformation will be shaped by wider adoption of EVs, green fuels like hydrogen and biofuels, and renewable energy solutions—making long-haul freight cleaner and more efficient. Eco-friendly packaging will further support emission reduction while maintaining operational performance.

Resilience and risk management

In an increasingly complex business landscape marked by trade tensions, geopolitical uncertainties, climate change risks, and inflationary pressures, the industry must embed agility and swift decision-making into its business models. Leveraging real-time data analytics, diversifying trade routes, and adopting multi-sourcing strategies can help businesses enhance inventory management and streamline order fulfilment. By proactively integrating these measures, industry participants can build resilience and sustain growth amid evolving challenges.

Adopting a business framework with synergy between the man and the machine

Frequent natural disasters, geopolitical conflicts or labour unrest directly impact the manpower-intensive industry such as logistics. While the above-mentioned incidents may be outside the control of the industry participants, they may tackle these by increasingly adopting automation within their functions, such as order picking, inventory movement, packaging, etc., to reduce the dependence on human labour and increase efficiency. Furthermore, digitalisation of critical business functions such as supply chain visibility, tracking shipments, predicting possible disruptions and mitigating, route optimisation hugely builds the competitive advantage of the business.

Collaboration through Partial Truck Load (PTL) mode

The express delivery logistics scenario is increasingly getting characterised by time-sensitive deliveries with highly stricter timelines. In such situations, it isnt often possible for the business to wait till the full truck load is achieved for dispatching the shipments. Hence, PTL solutions are increasingly gaining acceptance by the logistics players accepting orders from multiple businesses to be placed on a single carrier with multiple delivery stops. Though the transit time is more than FTL, it is less with a smaller number of stops as compared to LTL as the size of the shipments is comparatively larger. This mode is not only cost-efficient but also environmentally friendly.

Rising advent of Digital Freight Marketplaces

Digital Freight Marketplaces are the virtual versions of a bazaar where sellers and buyers meet to strike a deal. Here, in the digital freight marketplaces, this behaviour is replicated amongst the shippers and carriers. This mechanism is highly beneficial for both parties as they can connect in real time to hunt for the best bargain. The shippers can compare services and costs, while the carriers can access a larger pool of potential clientele.

ABOUT TCI EXPRESS

TCI Express, the only express delivery company in India with its own nationwide set-up, was established in 1996 as the foremost express delivery services business. Capitalising upon its firmly entrenched industry presence and deep technical know-how, TCI Express has maintained a successful, independent existence for the past nine years, while being an erstwhile division of Transport Corporation of India (TCI), one of the leading logistics solutions providers in India.

TCI Express provides expert B2B express delivery solutions across a wide range of industrial client base, from automobile, telecom, retail, and textile. Having multimodal business operations at the core of its value creation strategy, the Company offers impeccable services majorly in the form of Surface Express, Domestic Air Express, International Air

Express, Rail Express, and C2C Express while also addressing the needs of Pharma Cold Chain Express. The Company is at the service of its customers even on Sunday, holidays and late pickup, and has extended its reach to the Tier II and Tier III cities with the same standards of efficiency and time-definite services. A potent combination of unmatched service excellence, advanced technological capabilities, and a well-connected pan-India delivery network is the ‘X Factor that propels TCI Express ahead on its strategic growth map to achieve superior customer satisfaction and leave its unique imprint on the evolving logistics landscape of India. The Company, having been founded with the humble roots of ‘One Man, One Truck, One Office by the respected Late Shri Prabhu Dayal Agarwal ji (Shri PD Agarwal), has found its formidable strength and momentum from its customer and community-centric, empathetic business acumen.

The companys core competency is further enhanced by its technology-oriented ERP-enabled operations, automated processes, and integration of highly sophisticated technologies such as automated sorting centres, barcoding on packaging, use of GPS-enabled vehicles, and AI and Machine Learning systems in the business processes. TCI Expresss firm belief in well-rounded, balanced growth places it much ahead on the sustainability curve by actively advocating and implementing strategies such as the use of renewable energy, reducing emissions, and ensuring strong ethical governance and diverse leadership. In FY 2024-25, the company has received the ‘Indian CSR Award 2024 by Brand Honchos, and the ‘Great

Place to Work 2025-26 certification for the fifth consecutive year as a mark of honour for its consistent efforts to promote the well-being of the larger stakeholder groups.

Going forward, TCI Express reiterates its commitment towards superior customer service and efficient express delivery solutions. In its quest to achieve these laurels, the Company plans to automate its sorting centres in Ahmedabad and Kolkata, following a successful implementation of the same at Gurugram and Pune centres. Coupled with sustained branch expansion, volume growth and enhanced service offerings, the company is optimistic about sustained value creation for its stakeholders.

STRENGTHS THAT SET US APART

Bespoke Solutions Across Niche Segments

Capability to cater to the complex express delivery needs of specific industries like Automobile, electronic, textile, Cold Chain, Aerospace, and Engineering with value-added and customised, sector-specific solutions.

Wide Distribution Network and Focus on Expansion

Presently serving 60,000+ locations and 29,000+ pin codes across 200+ countries and territories in domestic and international markets, focus on continuous expansion in metro and tier I cities through new branch offices, service locations, pickup points, and delivery centres.

Enhanced Automation

Outlined a capital expenditure plan of 500 crores for the period FY23 to FY27, focused on enhancing our long-term capabilities and reinforcing our competitive edge in the logistics sector.

Diverse Client Base

Highly diversified client base of corporate and SME customers across key industry verticals such as automobile, telecom, retail, pharmaceuticals, electronics and e-commerce.

Low Working Capital Requirement

Minimised working capital requirements and stable business operations for greater financial flexibility and superior returns.

Industry-Leading Cost Efficiency

Delivering the most cost-effective logistics solutions in the industry.

Advanced API-Based Technology

Streamlined backend processes and seamless integration with customer systems for enhanced operational efficiency .

Secure Containerised Transport

Containerized movement for secure and efficient transport, minimising handling and reducing the risk of damage.

Asset Light Business Model

An asset-light business model contributing positively to the bottom line, while optimizing asset base, thus boosting flexibility and returns to capital.

High Value Cargo Expertise (Low Volume, High Margins)

Specialised handling and security for efficient, secure shipments of compact yet high-value cargo for profit maximisation.

Superior Client Services

Delivering highly responsive, exceptional customer support and personalised service to cater to unique customer demands.

Operations through Owned Branches Only

All branches (currently 970+) are owned and operated directly, ensuring consistent, standardised service levels and strict quality control.