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Express networks are democratising economic opportunity

This article is authored by Vijay Kumar, CEO, Express Industry Council of India (EICI).

Published on: Jul 26, 2026, 17:05:59 IST
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India's economic story is no longer being written solely in its metropolitan centres. The next chapter of growth is emerging from Bharat, from Tier II and Tier III cities, industrial clusters, manufacturing hubs and entrepreneurial ecosystems that are increasingly becoming integral to India's development journey.

Economy (Illustration: Abhimanyu Sinha)
Economy (Illustration: Abhimanyu Sinha)

Across the country, a new generation of businesses is taking shape. Whether it is a textile exporter in Surat, a handicraft entrepreneur in Jaipur, a pharmaceutical supplier in Indore or a technology-enabled MSME in Coimbatore, these enterprises are no longer constrained by geography. They are serving customers across India and increasingly across the world.

What is making this transformation possible is not just digital adoption. It is the physical infrastructure that enables commerce to move seamlessly across the country and beyond. At the heart of this transformation lies the express logistics sector.

Traditionally viewed as a delivery service, express logistics has evolved into a strategic economic enabler. It is the infrastructure that connects businesses to markets, manufacturers to supply chains and entrepreneurs to opportunities. In an increasingly interconnected economy, the ability to move goods quickly, reliably and predictably is becoming as important as the ability to produce them.

They do so by removing the traditional barriers that have long favoured businesses operating in large metropolitan centres. First, they reduce the disadvantages of geography. A business located in a Tier III city can today access customers across India without needing a presence in every major market. Second, they lower barriers to growth by enabling entrepreneurs to scale without investing heavily in warehousing, distribution networks or physical retail infrastructure. Third, they open pathways to global trade by simplifying access to international customers and supply chains. Finally, they compress time itself. Faster and more predictable movement of goods improves cash flows, optimises inventory and allows businesses to compete on service quality rather than location. In effect, express networks are helping level the playing field between enterprises operating in metros and those emerging from Bharat.

The scale of this transformation is already visible. India's express industry has grown threefold over the past eight years, expanding from approximately $ 3 billion in FY17 to nearly $ 9 billion in FY25, while supporting an estimated three million direct and indirect jobs across the country. More importantly, the sector is expected to more than double in size to nearly $ 22 billion by FY30, creating up to seven million jobs and strengthening its role as a critical pillar of India's economic infrastructure.

The rise of Bharat as a growth engine is closely linked to the expansion of digital commerce. Today, Tier II and Tier III cities account for nearly 60% of India's e-commerce demand, reflecting a profound shift in consumption and entrepreneurship beyond metropolitan markets. India's e-commerce ecosystem has expanded rapidly, with annual shipment volumes increasing from approximately 1.1 billion shipments in FY19 to nearly five billion shipments in FY25. The market is now valued at nearly $ 94 billion and continues to demonstrate significant headroom for growth.

However, every digital transaction ultimately depends on a physical network.

A customer may discover a product online, but economic value is realised only when that product reaches its destination efficiently. Behind every successful digital marketplace lies a sophisticated logistics ecosystem that enables businesses to fulfil promises, manage inventories, expand markets and build customer trust. As India's digital economy expands deeper into smaller cities and towns, the importance of robust express connectivity becomes even more pronounced.

This is particularly important for India's MSMEs, which contribute nearly one-third of the country's GDP and almost half of its exports. For many small businesses, access to efficient logistics can be the difference between remaining local and becoming national or global. Reliable express connectivity reduces barriers to market access, improves working capital cycles, enables inventory optimisation and allows enterprises to compete with much larger players.

The opportunity becomes even more significant when viewed through the lens of exports.

India's international express segment has emerged as one of the fastest-growing components of the logistics ecosystem, recording a CAGR of 27% between FY19 and FY25. More than 22 million international express shipments are now handled annually, with exports accounting for over 80% of total shipments. This highlights a fundamental shift in how Indian businesses are accessing global markets. Increasingly, exporters are no longer limited to large corporations concentrated in major cities. Small manufacturers, D2C brands, artisans and specialised producers from across Bharat are leveraging express networks to participate directly in international commerce.

Policy reforms are further accelerating this transition.

The recent removal of the 10 lakh value cap on courier exports marks a significant step towards democratising international trade. Combined with digital customs initiatives, the Express Cargo Clearance System (ECCS), Return-to-Origin provisions and the development of E-Commerce Export Hubs, these reforms are reducing friction, improving predictability and enabling businesses of all sizes to access international markets with greater ease.

At the same time, India's broader infrastructure transformation is reshaping the logistics landscape. Initiatives such as PM Gati Shakti, the National Logistics Policy and significant investments in multimodal connectivity are creating the foundation for a more integrated and efficient movement ecosystem. Over the past decade, more than 85 airports have been operationalised, many of them in emerging economic centres. This expansion is improving regional connectivity, enhancing cargo movement and bringing previously underserved markets closer to major trade corridors.

These developments are not merely improving logistics. They are reshaping India's economic geography.

Historically, proximity to ports, airports and major commercial centres often determined a business's growth potential. Today, that equation is changing. An entrepreneur in Guwahati can access customers in Mumbai, Dubai or London with greater ease than ever before. A manufacturer in Coimbatore can participate in national supply chains with the same efficiency as a company located in Delhi NCR. A start-up in Lucknow can serve customers across India without geography becoming a competitive disadvantage.

That is what true economic inclusion looks like.

As India advances towards its Viksit Bharat vision, logistics must be viewed through a broader strategic lens. Roads, airports and digital infrastructure are rightly recognised as catalysts of growth. Express logistics deserves similar recognition because it serves as the connective tissue linking production, consumption and trade across the economy.

The journey from Metro India to Bharat is ultimately about democratising access to opportunity. When businesses can reach markets irrespective of location, when entrepreneurs can scale without relocating to metropolitan centres and when MSMEs can participate confidently in global value chains, growth becomes more inclusive, resilient and sustainable.

Every shipment delivered from a small town to a major city, every MSME reaching a customer across the country and every first-time exporter accessing an international market represents a narrowing of the economic distance between Metro India and Bharat.

That is how express networks democratise opportunity.

They are not merely moving parcels. They are connecting ambition with markets, enterprise with growth and Bharat with the world. In doing so, they are helping ensure that India's next phase of economic growth is not concentrated in a few cities, but shared across the nation.

(The views expressed are personal)

This article is authored by Vijay Kumar, CEO, Express Industry Council of India (EICI).

 
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