$360 bn infra push cuts India's logistics cost to 10% of GDP: Report
Cumulative investment of $360 billion in infrastructure development over the last decade has brought India’s logistics cost down to 10–10.7 per cent of GDP in FY26, from 13–14 per cent of GDP a decade ago, translating into annual savings of $123–133 billion for the economy, according to a report.
The CII-Knight Frank report was launched at the CII Multimodal Transportation and Logistics Summit here on Friday. Reflecting this progress, India’s position in the global Logistics Performance Index (LPI) improved from 54th in 2014 to 38th in 2023, the report said.
As a result of these sustained efforts, the country’s logistics ecosystem has improved considerably, contributing to enhanced connectivity, trade facilitation, and supply chain performance.
The report stated that despite these improvements, India’s logistics supply chain is yet to achieve optimal efficiency, and 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 MT per annum, to achieve its 2047 freight modal shift targets,” the report said.
Continued overdependence on road transport for freight movement, delays in the development of integrated MMLPs, and inadequate first- and last-mile connectivity continue to limit the shift of cargo movement towards rail and other efficient modes of transport.
“By aggregating fragmented, sub-threshold cargo, MMLP-grade interchange unlocks a 43 per cent total cost advantage over road freight on DFC corridors. Simultaneously, MMLPs compress terminal origin-side dwell times by over 90 per cent and drastically reduce handling damage, transforming rail into a time-predictable, reliable logistics channel for high-growth, non-bulk sectors like FMCG, automotive, and e-commerce,” said Ashwani Gupta, Whole-time Director and CEO, Adani Ports and SEZ.
Global experiences from countries such as Germany, the Netherlands, and Singapore also demonstrate that integrated logistics parks significantly improve supply chain integration, operational efficiency, and modal balance.
