India’s express logistics and courier sector is poised to double from US$ 9 billion in FY25 to US$ 18–22 billion by FY30, supporting up to 7.5 million jobs, according to an EICI–KPMG report. The industry, which played a vital role during the COVID-19 vaccination drive, is now central to e-commerce growth, MSME exports, and cross-border trade.
The express logistics and courier sector is projected to reach US$ 18-22 billion by FY2029-30, up from an estimated US$ 9 billion in FY2024-25, and is expected to support 6.5-7.5 million jobs, according to a report.
The report also highlighted that the express industry has evolved from being merely a logistics facilitator to becoming an essential service provider, playing a crucial role during the COVID-19 pandemic by supporting the world’s largest vaccination drive and ensuring priority delivery of essential goods.
The report, titled “Express Industry in India 2025: Powering India’s Economy, Connecting Businesses and Markets,” commissioned by the Express Industry Council of India (EICI) and KPMG, identified five priority areas—agility and adaptability, efficiency improvements, customer centricity, a sustainable operating outlook, and a robust policy and regulatory framework—for unlocking future growth. It also emphasizes the need for targeted policy measures, infrastructure expansion, and technology adoption, supported by initiatives such as PM Gati Shakti, the National Logistics Policy, and Bharatmala Pariyojna.
Post-pandemic growth is being fueled by high internet and smartphone penetration, exponential e-commerce expansion, increased MSME output, and significant infrastructure development in tier II and III cities, the report stated. It was released by Union Minister for Road Transport and Highways Nitin Gadkari, alongside senior government officials, industry leaders, and other stakeholders, at an event held in New Delhi late Tuesday.
The sector has expanded from US$ 3 billion in FY17 to US$ 9 billion in FY25, achieving a CAGR of 12 to 15%. It is anticipated that the market will double to between US$ 18 and 22 billion by FY30. By FY25, the express industry is projected to support between 2.8 and 3 million jobs, the report noted.
Furthermore, the sector is expected to make a substantial contribution to GST revenues, estimated at US$ 1 to 1.5 billion, and customs revenues of US$ 650 million, while serving as a vital enabler for e-commerce, MSMEs, and cross-border trade.
The domestic express segment constitutes roughly 70% of the total market, valued at US$ 6.3 to 6.5 billion, with surface express accounting for the largest share.
In addition to the growth projections, experts believe that the express logistics sector is becoming a backbone for India’s digital and consumption-driven economy. With B2B online marketplace is expected to reach US$ 200 billion by 2030, the demand for time-sensitive and reliable logistics solutions will continue to rise. MSMEs, which contribute nearly 30% to India’s GDP and 45% to its exports, increasingly rely on express delivery networks to access both domestic and global markets. By reducing delivery timelines, ensuring supply chain predictability, and connecting remote geographies, the express industry is not just complementing trade but also accelerating formalisation in the economy.
The growth is also aligned with government priorities to reduce logistics costs as a percentage of GDP. India’s logistics costs currently stand at 13-14%, compared to 7-8% in advanced economies. Government initiatives aim to cut costs to around 8% by 2030. Express logistics players, through multimodal integration across surface, air, and coastal routes, are expected to play a decisive role in achieving this target.
Another defining trend is technology adoption. From AI-driven route optimization and IoT-enabled tracking to warehouse automation and digital payments, express companies are leveraging technology to improve customer experience and operational efficiency. India Post’s introduction of OTP-based deliveries and UPI-enabled payment systems reflects how even traditional players are adapting to modern logistics needs, ensuring better accountability and reducing dependency on cash transactions.
Sustainability is emerging as a parallel priority for the sector. Companies are increasingly adopting electric vehicles, biofuels, and greener packaging solutions to align with global ESG standards and India’s climate commitments. As consumers become more conscious of carbon footprints, integrating green logistics practices will become both a regulatory necessity and a competitive advantage.
Finally, global opportunities are opening up for Indian logistics players. The surge in demand for “Made-in-India” products, coupled with expanding free trade agreements, is boosting the need for international express services. This is evident in the rising share of cross-border e-commerce, which is expected to touch US$ 127.31 billion in 2025 to US$ 235.01 billion by 2030, with India as a key contributor.
Together, these developments underscore that the express logistics industry is not just expanding in size but also transforming in character—emerging as a strategic enabler for India’s growth story.
“The express industry has become a critical pillar of India’s economy, connecting businesses and markets with speed and reliability. From supporting the world’s largest vaccination drive to enabling e-commerce, MSMEs and exports, our sector has shown agility, resilience and innovation. Domestic express, which makes up around 70 per cent of the market, is led by surface transport growth, while international express is expanding rapidly with global demand for Made-in-India products,” said Vijay Kumar, CEO, EICI.
India’s express logistics industry is rapidly transforming to meet the increasing demand for fast and reliable delivery solutions, not only through air but also across road, rail, and coastal networks, said Girish Nair, Partner, Mobility and Logistics, National head – Aviation Sector, Global Lead – Airports, KPMG in India.
