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India’s $360 bn infra-investments slashes logistics cost

by Blitz India Media
May 30, 2026
in News
0
financial

Blitz Bureau

NEW DELHI: Cumulative investments of nearly $360 billion in infrastructure development over the last decade have translated into estimated annual savings of $123–133 billion for the Indian economy, a joint report said. The joint report from CII and Knight Frank India said the India’s logistics cost have been slashed to about 10–10.7 per cent of GDP in FY 2026, from 13–14 per cent of GDP a decade ago due to infrastructure investments.

The firm said that the country’s position in the global logistics performance index improved from 54th in 2014 to 38th in 2023, reflecting enhanced connectivity, trade facilitation, and supply chain performance. Despite these improvements, India’s logistics supply chain is yet to achieve optimal efficiency, the report said, noting that Multimodal Logistics Parks (MMLPs) are central to improving India’s logistics efficiency.

“India will require 216 MMLPs, each with an average capacity of 16–17 MMT per annum, to achieve its 2047 freight modal shift targets,” the firm said. Continued overdependence on road transport for freight movement, delays in the development of integrated Multimodal Logistics Parks (MMLPs), and inadequate first- and last-mile connectivity continue to limit the shift of cargo movement towards rail and other efficient modes of transport.

“The core challenge is no longer an infrastructure deficit, but a lack of connective nodes… By aggregating fragmented, sub-threshold cargo, MMLP-grade interchange unlocks a monumental 43 per cent total cost advantage over road freight on DFC corridors,” said Ashwani Gupta, Chairman, CII National Committee on Ports and Shipping and Whole Time Director & CEO, Adani Ports and SEZ.

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