Deal value in India's transportation, logistics sector surges 85 pc in H1 2025

New Delhi, June 27 (IANS) India’s transportation and logistics sector gained significant traction in the first half of 2025, with total deal value surging to $609.7 million, marking a robust 85 per cent increase from H1 2024, according to a report on Friday.

Deal volumes grew substantially from 16 to 25, reflecting stronger investor confidence and sustained interest in the sector’s transformation, according to the Grant Thornton Bharat report.

India’s logistics sector is navigating a dynamic phase marked by steady demand, evolving cost structures, and a growing emphasis on sustainability.

“While rising freight and servicing costs continue to weigh on margins, inventory movement remains resilient. The sector is also making measurable strides in sustainability, with significant investments in digital infrastructure and low-emission facilities, alongside policy tailwinds aimed at reducing costs and improving turnaround time,” the findings showed.

The surge in mergers and acquisitions (M&A) values for Q2 2025 was driven by landmark deals such as Delhivery’s acquisition of Ecom Express.

Private equity investors continued backing digital-first logistics companies such as SmartShift (Porter), Routematic, and Celcius Logistics, indicating confidence in scalable, asset-light models that bring efficiency to fragmented last-mile and intra-city delivery, the report mentioned.

Meanwhile, freight rates have surged by up to 28 per cent on key trans-Pacific and intra-Asia routes, primarily due to port congestion and container shortages in China. Container pile-ups in East Asia have reduced availability in South Asia, forcing Indian exporters to pay premiums for guaranteed slots.

“The logistics industry is at the forefront of addressing climate change, with sustainability rapidly evolving from a regulatory requirement to a business imperative. Integrating ESG-aligned logistics into corporate strategies will boost sustainability credentials with investors, consumers, and regulators alike,” the report emphasised.

Over the next five to seven years, one-third of India’s heavy-duty truck fleet is expected to transition to LNG, and many private companies have already begun deploying cleaner alternatives, it added.

--IANS

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