Archive · 19 Jan 2026
Tech-Enabled Logistics Boost MSME Efficiency: Study
A new study by C-DEP and IIT Delhi shows that tech-enabled goods transportation services are helping small businesses in India.
These services make it easier and cheaper for small businesses to move goods within cities.
The study found that most small businesses using these services save money, get their goods delivered on time, and can reach more customers.
However, there are concerns about new taxes that could make these services more expensive.
The study suggests that the government should make sure these services stay affordable and support the use of electric vehicles for transportation.
This way, small businesses can keep growing and doing well.
Tech-enabled goods transportation services significantly reduce logistics costs and improve efficiency for MSMEs.
73% of surveyed MSMEs reported lower transportation costs, and 95% experienced improved on-time transportation.
GST 2.0 could increase taxes on these services from 5% to 18%, raising per-trip logistics costs by over 12%.
The study recommends clear regulatory clarification under GST and support for the transition to electric freight vehicles.
MSMEs contribute to 30% of India's GDP and 45% of industrial output, facing challenges in intra-city goods movement.
- Who
- C-DEP and IIT Delhi, with contributions from Shri Praveen Khandelwal, Shri Ashwini Mahajan, and Dr. Jaijit Bhattacharya
- What
- Release of a study on tech-enabled intra-city logistics for MSMEs
- When
- January 19
- Where
- India Habitat Centre, New Delhi
- Why
- To assess the role of tech-enabled goods transportation services in improving logistics cost and efficiency for MSMEs
- Report Title
- Study of Technology-Enabled Intra-City Logistics for MSMEs
- Organizations Involved
- C-DEP, IIT Delhi
- Event Location
- India Habitat Centre, New Delhi
- MSMEs' Contribution to GDP
- 30%
- MSMEs' Contribution to Industrial Output
- 45%
- Business Users of Tech-Enabled Services
- 71%
- MSMEs Reporting Lower Transportation Costs
- 73%
- MSMEs with Improved On-Time Transportation
- 95%
- MSMEs Expanding Customer Reach
- 27%
- Potential GST 2.0 Tax Increase
- From 5% to 18%