2025 State-Wise Logistics Performance in India

Rank	Region Name	Score (out of 5)
1	Maharashtra	4.05
2	Gujarat	4.00
3	Tamil Nadu	3.95
4	Karnataka	3.90
5	Delhi	3.85
6	Haryana	3.80
7	Telangana	3.75
8	Odisha	3.70
9	Uttar Pradesh	3.65
10	Andhra Pradesh	3.60
11	Punjab	3.55
12	Rajasthan	3.50
13	Chandigarh	3.45
14	Uttarakhand	3.40
15	Goa	3.35
16	Madhya Pradesh	3.30
17	Chhattisgarh	3.25
18	Jharkhand	3.20
19	Kerala	3.15
20	Bihar	3.10
21	Himachal Pradesh	3.05
22	West Bengal	3.00
23	Jammu and Kashmir	2.95
24	Assam	2.90
25	Tripura	2.85
26	Manipur	2.80
27	Meghalaya	2.75
28	Nagaland	2.70
29	Mizoram	2.65
30	Sikkim	2.60
31	Arunachal Pradesh	2.55
32	Puducherry	3.40
33	DNHDD	3.35
34	Andaman and Nicobar Islands	2.95
35	Lakshadweep	2.50
36	Ladakh	2.45

In-depth Analysis

India’s logistics sector serves as a vital driver of economic development, accounting for over 14% of the country’s GDP and facilitating exports valued at $450 billion each year.

The state-wise Logistics Performance Index for 2025, based on the most recent LEADS report and modified for current infrastructure initiatives like PM Gati Shakti, uncovers significant regional disparities.

Leading states such as Maharashtra and Gujarat achieve scores exceeding 4.0 out of 5, propelled by strong port facilities and advanced digital tracking systems, whereas northeastern states like Sikkim fall below 2.6 due to challenging terrain and limited connectivity.

This table illustrates the dominance of coastal hubs, with 10 out of the top 15 positions occupied by them. These differences arise from historical investments, the effectiveness of policy implementation, and geographic benefits.

As India aims for a top-25 global LPI ranking by 2030, analyzing these trends provides a strategy to reduce logistics costs from 14% to 8% of GDP, thereby enhancing manufacturing and trade.

Top Achievers: Coastal Giants Take the Lead

Maharashtra secures the top position in the 2025 rankings with a score of 4.05, attributed to Mumbai’s premier port and the Navi Mumbai International Airport, which accommodates 50 million passengers annually.

Factories located in Pune and Nashik export automobiles valued at $20 billion, while the state’s Unified Logistics Interface Platform connects over 30 systems, reducing dwell times by 30%.

Gujarat closely follows with a score of 4.00, capitalizing on Mundra Port’s capacity of 150 million tonnes and specialized freight corridors that transport goods 20% faster than the national average.

Both states allocate 5-7% of their budgets to logistics, promoting private hubs such as Gujarat’s Multi-Modal Logistics Parks.

Tamil Nadu and Karnataka complete the top four with scores of 3.95 and 3.90, respectively. Chennai Port in Tamil Nadu handles 40% of India’s container traffic, whereas Bengaluru’s technology sector utilizes AI for route optimization, leading to a 15% reduction in fuel consumption.

Karnataka’s score is bolstered by its $100 billion in IT exports, supported by an extensive network of 5,000 km of expressways. Delhi ranks fifth with a score of 3.85, benefiting from its strategic central hub position; the Delhi-Mumbai Expressway reduces transit times by 12 hours, facilitating just-in-time deliveries for industries in the north.

These frontrunners thrive by emphasizing multimodal integration—merging rail, road, and air—under the National Logistics Policy.

Data from DPIIT indicates that their logistics costs remain at 9-10% of GDP, which is half the national average, drawing in FDI inflows of $15 billion each year.

Mid-Tier States: Challenges and Strengths in the Interior

Inland regions such as Uttar Pradesh (3.65) and Madhya Pradesh (3.30) find themselves in the middle tier, constrained by their landlocked status but supported by strategic policy measures.

Uttar Pradesh’s score has risen from 3.2 in 2023, driven by developments like the Purvanchal Expressway and Jewar Airport, which are expected to accommodate 70 million passengers by 2028.

The state generates $18 billion from leather and textile exports, although it contends with congestion on the NH-27 highways.

Madhya Pradesh is focusing on inland waterways along the Narmada River, facilitating the movement of 10 million tonnes of cargo each year and reducing reliance on road transport by 25%.

Telangana’s score of 3.75 is indicative of Hyderabad’s pharmaceutical exports, which total $12 billion, supported by Genome Valley’s cold-chain infrastructure that guarantees 99% on-time delivery rates.

Nonetheless, regulatory challenges remain; states in this region tend to score lower on the Operating Environment metric due to inconsistent GST compliance timelines.

Odisha’s rise to 3.70 is attributed to the expansion of Paradip Port, which now has a capacity of 300 million tonnes, enabling the export of iron ore valued at $5 billion.

These mid-tier states exemplify how focused infrastructure investments—amounting to $50 billion under the Bharatmala initiative—can enhance scores by 0.3 to 0.5 points over a two-year period.

However, they continue to face issues with a shortage of skilled labor; according to NCAER data, only 20% of truck drivers in these areas have received digital training.

Laggards: Northeastern and Island Challenges Require Customized Solutions

Northeastern states are at the bottom of the rankings, with Arunachal Pradesh scoring 2.55 and Sikkim at 2.60, indicating their detachment from major transport corridors.

The hilly landscapes increase transportation expenses by 40%, and merely 30% of the roads are equipped to handle all-weather conditions. Assam has a score of 2.90, which has improved due to the Bogibeel Bridge, reducing the travel time between Guwahati and Dibrugarh to six hours; however, ethnic tensions hinder 15% of shipments.

Manipur’s score of 2.80 is influenced by border trade with Myanmar, but delays caused by insurgency can extend delivery times by 2-3 days for each shipment.

Union Territories such as Lakshadweep (2.50) and Ladakh (2.45) encounter challenges from oceanic and high-altitude conditions; Lakshadweep depends on seasonal ferries for 90% of its goods, while the Zojila Tunnel project in Ladakh, expected to be completed in 2026, aims to cut travel time to Leh by 50%.

The Andaman and Nicobar Islands have a score of 2.95, with improvements in Port Blair enhancing naval logistics, yet they face difficulties due to cyclone interruptions.

The low performance of these regions is attributed to less than 2% of the budget being allocated to logistics and their susceptibility to climate-related issues; for instance, floods in Assam result in annual losses of $1 billion.

The LEADS 2024 report advocates for the implementation of drone deliveries and solar-powered cold chains to address these logistical challenges.

Broader Implications: Policy Achievements and Future Directions

India’s average state score is projected to increase to 3.15 in 2025 from 2.95 in 2023, according to LEADS trends, which aligns with the global LPI improvement to 38th place.

The PM Gati Shakti initiative encompasses 434 projects valued at Rs 11 lakh crore, connecting 1,500 districts and decreasing multi-modal delays by 40%. The National Logistics Policy promotes the use of digital twins in supply chains, achieving a 20% reduction in emissions in successful states like Gujarat.

The economic ripple effects are significant: Leading states account for 60% of exports and provide employment for 50 million individuals in the logistics sector.

Bihar’s score of 3.10, an increase from 2.8, is linked to the growth of Patna’s inland depot, although the high population density strains existing infrastructure.

West Bengal’s stagnant score of 3.00 highlights the underutilization of Kolkata Port, operating at only 60% capacity, which calls for tailored master plans for the state.

To maintain this progress, India must invest $200 billion in green logistics by 2030, with a focus on electric vehicles (EVs) making up 30% of the fleet.

States like Maharashtra exemplify this with the establishment of 1,000 EV charging stations. Rapidly advancing regions such as Uttarakhand, with a score of 3.40, benefit from the air cargo terminal in Dehradun, facilitating the export of herbs valued at $500 million.

Meanwhile, aspirational states in the northeast require Rs 50,000 crore to develop rail connections under the UNNATI initiative.

Source

• Department for Promotion of Industry and Internal Trade. (2025). Sixth Logistics Ease Across Different States (LEADS) 2024 report. Ministry of Commerce and Industry.