Express industry has transformed from a logistics facilitator to an essential service provider: Report

 

The Express Industry Council of India (EICI) unveiled its flagship report titled Express Industry in India 2025: Powering India’s Economy, Connecting Businesses and Markets, commissioned by EICI with KPMG in India as the knowledge partner. The report was launched by Mr Nitin Gadkari, Union Cabinet Minister for Road Transport and Highways, Government of India, along with senior government functionaries, industry leaders and other stakeholders in New Delhi.

The study highlights the sector’s expansion from USD 3 billion in FY17 to USD 9 billion in FY25, recording a compound annual growth rate of 12 to 15%. It projects that the market will double to between USD 18 and 22 billion by FY30. By FY25, the express industry is expected to support between 2.8 and 3 million jobs, make a significant contribution to GST revenues of USD 1 to 1.5 billion and Customs revenues of USD 650 million, and act as a vital enabler for e-commerce, MSMEs and cross-border trade.

The report notes that the express industry has transformed from a logistics facilitator to an essential service provider, playing a critical role during the Covid-19 pandemic in supporting the world’s largest vaccination drive and ensuring priority delivery of essential goods. Post-pandemic growth is being driven by high internet and smartphone penetration, exponential growth of e-commerce, the rise of MSME output, and significant infrastructure expansion into Tier II and III cities.

Domestic express accounts for about 70% of the total market, valued at USD 6.3 to 6.5 billion, with surface express contributing the largest share. The international express segment, with a share of around 30%, handled 19.5 million shipments weighing approximately 1,52,300 tones in FY24, registering an average growth rate of 18% between FY21 and FY24. Growth in this segment is being fuelled by the increased global appetite for Made-in-India products, including handicrafts, ethnic wear, home furnishings, auto components and other manufactured goods.

Key trends shaping the express industry

* Consolidation: Companies are strengthening efficiency and market reach through mergers, acquisitions and strategic partnerships.

* Agile business mo-dels: The sector is developing customised solutions to meet the growing demands of e-commerce, social commerce and quick commerce.

* Digital transformation: Players are deploying advanced technologies such as blockchain, artificial intelligence, machine learning and automation to improve delivery speed and customer experience.

* Sustainability: Industry leaders are committing to net zero targets and adopting greener operational practices to address environmental and social expectations.

The report further identifies five priority areas for unlocking future growth. These are agility and adaptability, efficiency improvements, customer centricity, a sustainable operating outlook, and a robust policy and regulatory framework. It calls for targeted policy measures, infrastructure expansion and technology adoption, supported by initiatives such as PM Gati Shakti, the National Logistics Policy and Bharatmala Pariyojna, as per a release.

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