India Road Freight Transport Market Growth Revenue, Company Profile, Key Trend Analysis & Forecast

India’s road freight transport sector is the lifeline of its economy, facilitating the movement of goods across the country’s vast and diverse geography. With over 63% of total freight traffic carried by road, this sector serves as the primary mode of transport for industries, agriculture, and trade. As India continues to expand its industrial base, improve infrastructure, and digitize logistics operations, the road freight industry stands at the cusp of transformation — driven by efficiency, sustainability, and technology.

Overview of the Road Freight Sector

The India Road Freight Transport Market is projected to grow significantly from 157.45 USD Billion in 2024 to 229.92 USD Billion by 2035. This growth is driven by rising domestic consumption, e-commerce expansion, and increasing trade linkages between urban and rural regions.

Road transport provides flexibility and last-mile connectivity unmatched by rail or waterways. It is particularly crucial for sectors like fast-moving consumer goods (FMCG), e-commerce, construction materials, pharmaceuticals, and perishables, which demand quick and reliable delivery.

Structure and Key Players

India’s road freight industry is highly fragmented, with over 80% of operators owning fewer than five trucks. Small fleet owners dominate the market, while organized logistics companies and third-party logistics (3PL) providers are gradually expanding their footprint. Prominent players include VRL Logistics, GATI, TCI, Mahindra Logistics, Delhivery, and Blue Dart, alongside numerous regional carriers.

This fragmentation has historically limited economies of scale and contributed to inefficiencies such as underutilized fleets, high empty return loads, and inconsistent service quality. However, the rise of logistics startups, digital freight matching platforms, and data-driven route optimization tools is reshaping the competitive landscape. Companies like BlackBuck, Rivigo (now part of Mahindra Logistics), and Porter are leveraging technology to connect shippers and transporters, reduce idle time, and improve cost efficiency.

Government Initiatives and Infrastructure Development

Recognizing the strategic importance of road transport, the Indian government has launched several major initiatives to modernize infrastructure and streamline logistics. The Bharatmala Pariyojana, launched in 2017, aims to construct and upgrade over 83,000 kilometers of highways, connecting key economic corridors, border regions, and ports. As of 2025, significant portions of the project have been completed, enhancing connectivity between industrial hubs and consumption centers.

In addition, the Dedicated Freight Corridors (DFC) and Multimodal Logistics Parks (MMLPs) are being integrated with the highway network to enable seamless multimodal transport. The government’s PM Gati Shakti National Master Plan, launched in 2021, further accelerates this integration by combining road, rail, air, and port infrastructure under a unified planning framework.

Digitization initiatives such as FASTag for automated toll collection, e-way bills under GST, and the ULIP (Unified Logistics Interface Platform) are also improving transparency and reducing delays at checkpoints. These measures collectively aim to bring down India’s logistics cost, currently estimated at 13–14% of GDP, closer to the global benchmark of 8–9%.

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Challenges in the Sector

Despite rapid progress, India’s road freight sector continues to face several challenges:

High Operating Costs: Rising fuel prices, toll fees, and maintenance costs significantly impact profitability, especially for small operators.

Infrastructure Bottlenecks: Although highways are improving, secondary and rural roads remain in poor condition, slowing transit times.

Driver Shortage: India faces an acute shortage of trained truck drivers, leading to long working hours, fatigue, and safety issues.

Environmental Concerns: The sector contributes significantly to greenhouse gas emissions due to reliance on diesel-powered vehicles.

Regulatory Complexity: Varying state-level regulations and permit requirements can create administrative hurdles for inter-state movement.

Addressing these challenges requires coordinated efforts between the government, private sector, and technology providers.

The Road Ahead: Trends and Future Outlook

The future of India’s road freight transport is increasingly shaped by innovation and sustainability. Key trends include:

Electric and Alternative Fuel Trucks: Transitioning to electric and CNG/LNG-powered vehicles is gaining traction, supported by the FAME-II and Green Mobility initiatives.

Digital Freight Platforms: The rapid adoption of app-based freight matching, real-time tracking, and predictive analytics is enhancing efficiency and transparency.

Warehouse and Supply Chain Integration: Integrated logistics parks and automation in warehousing are enabling smoother end-to-end supply chains.

Public-Private Partnerships (PPP): Greater collaboration between government and private investors is expected in infrastructure financing and logistics modernization.

By 2030, India’s road freight demand is projected to double, reaching over 13 billion tonnes, fueled by industrial growth, urbanization, and the rise of Tier-2 and Tier-3 consumption centers. With continuous investment in highways, digital systems, and green transport, the sector is poised to become more efficient, sustainable, and globally competitive.

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India’s road freight transport is more than just a logistics enabler — it is the economic backbone that connects producers, markets, and consumers across the nation. While challenges persist, the convergence of infrastructure upgrades, policy reforms, and technology-driven logistics is transforming the sector. As India aspires to become a global manufacturing and export powerhouse, a modern, efficient, and sustainable road freight system will remain central to achieving that vision.

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