Blitz Bureau
NEW DELHI: India’s logistics is entering a new phase and converting itself into a faster, smarter, and globally competitive sector. From integrated digital platforms that streamline freight movement to modern infrastructure connecting every part of the country, a next-generation logistics ecosystem is steadily taking shape.
Backed by targeted policy reforms, institutional realignment, and technology-driven solutions, the Government is transforming logistics into a key driver of India’s economic growth and global trade positioning.
A wave of structural changes is reshaping how logistics is planned, executed, and scaled across the country. Platforms like ULIP (Unified Logistics Interface Platform) are integrating data across departments, while LDB (Logistics Data Bank) 2.0 enables real-time visibility of millions of containers.
Improved accountability Every HSN (Harmonised System of Nomenclature) code is mapped to its line ministry, improving accountability and policy design. Logistics plans at the city and state levels under the SMILE (Strengthening Multimodal and Integrated Logistics Ecosystem) programme are being aligned with national priorities.
Inland waterways transported a record 145.84 million tonnes of cargo last year, while rail congestion is being addressed through dedicated freight corridors. In industrial zones, plug-and-play parks under National Industrial Corridor Development Corporation offer ready infrastructure for investors. On the ground, reforms such as GST and the e-Way Bill have removed long-standing frictions in interstate transport. These interventions are driving a clear objective: reducing logistics costs, improving efficiency, and strengthening India’s position in global supply chains.
Multimodal logistics India is transforming its logistics network along the Gangetic Plain through an integrated multimodal approach that combines road, rail, and inland waterways, making transport faster, cheaper, and greener.
The Eastern Dedicated Freight Corridor (EDFC), a high-speed rail freight line, has reduced wagon turnaround times from 15- 16 days to two-three days and cut transit times from over 60 hours to around 35-38 hours.
The revival of the Ganga Waterway, linked to the EDFC at Varanasi, allows manufacturers to move cargo efficiently to eastern ports like Haldia. Rapid development of warehousing and logistics facilities near the corridor has boosted employment, improved inventory management, and enabled timely production and export.
New momentum India’s path to economic growth increasingly relies on efficient logistics, which are key to enhancing competitiveness and global connectivity.
The National Logistics Policy and PM GatiShakti have injected new momentum into this transformation, laying the foundation for a more integrated and data-driven logistics ecosystem. But strategy needs precision, and that starts with knowing the true cost of logistics.
Until recently, India’s logistics costs were often overestimated. Commonly cited figures of 13 to 14 per cent of GDP were based on partial or external data. This led to confusion in policymaking and misperceptions globally.
That has now changed. A new study by the Department for Promotion of Industry and Internal Trade, in collaboration with National Council of Applied Economic Research, provides a scientifically grounded estimate.
The report places India’s logistics cost at 7.97 per cent of GDP and 9.09 per cent of non-services output for 2023 to 2024. In absolute terms, the total cost is estimated to be Rs 24.01 lakh crore.
Benchmark costs The report offers a detailed breakdown by cost components, firm size, and product type. It highlights a critical insight: smaller firms face significantly higher logistics costs, which affect their ability to scale and compete.
The study also introduces benchmark freight costs per tonne-kilometre across various transport modes and distances. This data is essential for better supply chain planning and pricing.
Multimodal transport is emerging as a key lever for efficiency. For example, the report shows that for journeys of around 600 km, improving the first and last 50 km can significantly lower the total logistics cost. This underscores the importance of last-mile infrastructure and multimodal logistics integration. With this data-backed clarity, both the Government and industry can make smarter investments, design sharper policies, and upgrade infrastructure faster. In short, logistics is no longer a black box. With accurate cost estimates, actionable insights, and targeted interventions, India is transforming its supply chains from a hidden burden into a source of strength.
