India has achieved a remarkable reduction in logistics costs by nearly one-third, driven by extensive infrastructure investments under initiatives like PM Gati Shakti and the National Logistics Policy. This improvement spans various sectors including road, rail, and port systems, bolstering the country’s position as a competitive global manufacturing hub.
Key to this transformation has been the establishment of Dedicated Freight Corridors (DFCs), which have revolutionized cargo movement. The Western and Eastern DFCs, connecting major trade routes, enable heavy-haul double-stack trains to transport goods more quickly and cost-effectively than road transport. Additionally, port modernisation efforts have led to faster vessel turnarounds and enhanced connectivity, further reducing maritime logistics costs.
The impact of these advancements is evident across multiple industries, including automotive, textiles, and e-commerce, where businesses are experiencing shorter transit times and better predictability. India’s goal is to lower logistics costs to 8% of GDP by 2047, down from 13-14% a decade ago. To achieve this, the country anticipates needing about 215 multimodal logistics parks and continued investment in infrastructure will be crucial for maintaining competitiveness in manufacturing and trade.
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