Viksit Bharat 2047 is India’s roadmap to becoming a self-reliant and prosperous economy by 2047 with a focus on economic growth, technological upgradation, infrastructure development, social empowerment, and sustainability. The logistics industry holds immense potential in contributing towards the realization of this goal. With the current logistics cost accounting for 13-14% of India’s GDP, the government has made strategic policy interventions to reduce it to around 8-10%, thereby positioning India among the top 25 countries in the World Bank’s logistics performance index by 2030.
The Indian logistics market is anticipated to witness significant growth from $317.26 billion in 2024 to an estimated $484.43 billion by 2029, driven by an annual growth rate of 8.8%. Moreover, with India’s e-commerce market expected to reach $325 billion by 2030, a robust logistics network is required to support this exponential growth of the sector. While India’s traditional logistics framework relied on utilizing road, rail, air, and water transport networks separately, the infrastructural investments have enabled multimodal transportation by integrating these networks. This approach has been nothing short of transformational, leading to improved transit times, cut down of costs, and bringing more agility into supply chains.
Revolutionizing Logistics Through Policy Reforms
The Indian government has implemented a series of initiatives and policy reforms to streamline logistics operations, reduce bottlenecks, and accelerate sectoral development. One such initiative is the PM Gati Shakti National Master Plan, which encompasses a framework for achieving operational excellence through seamless connectivity. Focused on the holistic development of infrastructure, it has led to the promotion of inland waterways and the execution of other projects like Sagarmala and Bharatmala that aim to enhance the overall connectivity of multiple modes of transportation.
The National Logistics Policy (NLP) complements the Gati Shakti Plan by digitizing supply chains and making the regulatory processes convenient. With the vision of decreasing logistics costs from 14-16% of GDP to come down to a single digit, NLP is establishing India as a global logistics hub. Its focus on leveraging technology and promoting sustainability has streamlined operations and enhanced transparency.
Apart from these, the government has laid huge emphasis on strengthening India’s maritime infrastructure with its Maritime India Vision 2030. This is an important initiative aimed at making India a global maritime leader by modernizing ports, promoting inland waterways, increasing shipping tonnage and enhancing the overall shipping infrastructure. In support of this, the government also introduced a Maritime Development Fund of Rs 25,000 crore in the recent budget, which will focus on domestic shipbuilding and reducing dependence on foreign vessels. These policies and projects together aim to improve maritime competitiveness while developing green and sustainable port and shipping operations.
Infrastructure Investments Driving High Efficiency and Growth
To solidify India’s position as a global logistics powerhouse and achieve its aim of Viksit Bharat, multiple infrastructural investments have been made. This improved Some of the key infrastructural projects and developments that are shaping the future of the Indian logistics industry include:
The introduction of Bharatmala Pariyojana has tremendously enhanced regional connectivity by building more than 18,000 km of highways across the country (as on 31st Oct 2024). This has led to a ripple effect of transforming the businesses along its way, such as the establishment of Multimodal Logistic Parks, logistic hubs and warehouses. This fuelled development of economic corridors and improved road infrastructure has enabled saving logistics costs and reducing transit times.
The launch of Dedicated Freight Corridors (DFCs) marks a significant step toward modernizing India’s logistics landscape. Focused on the expansion of India’s railway infrastructure, these high-speed corridors provide an exclusive network for cargo trains, ensuring faster, more efficient and cost-effective freight movement across the country. By supporting an average speed of 55-60 kmph, this is a massive jump from an average speed of 18-20 kmph of the Indian Railways.
Technology integration is another critical aspect of infrastructural investments in logistics. AI-driven route optimization, IoT-enabled fleet management, blockchain-powered tracking systems and the launch of Unified Logistic Integrated Platform have significantly reduced operational inefficiencies by making logistics more predictable, integrated, digitalized and cost-efficient.
Charting the Road Ahead
Charting the road ahead for India’s logistics sector requires a continued focus on strategic planning and innovation. While significant strides have been made through policy reforms and infrastructure investments, addressing remaining infrastructure gaps, particularly in last-mile connectivity and warehousing, remains an area of concern. Embracing emerging technologies coupled with commitment towards sustainable practices will lead the way to a self-reliant and prosperous nation as outlined by Viksit Bharat.
(The article is authored by Mr. Puneet Agarwal, President, CJ Darcl Logistic Ltd.)