India’s large-scale infrastructure investments are helping reduce logistics costs by nearly one-third, improving supply chain efficiency and strengthening the country’s competitiveness in global trade, according to industry estimates and government assessments.
The reduction in logistics costs has been driven by major investments in highways, dedicated freight corridors, multimodal logistics parks, port modernisation, and digital freight systems under flagship initiatives such as PM Gati Shakti and the National Logistics Policy.
Industry experts said improved road connectivity, faster cargo evacuation from ports, expanded rail freight capacity, and streamlined customs and cargo handling processes have significantly lowered transit times and operational expenses for businesses.
The development of integrated logistics infrastructure has also enhanced cargo movement across manufacturing hubs, industrial corridors, and export gateways, benefiting sectors including automotive, textiles, electronics, agriculture, and e-commerce.
Officials noted that lower logistics costs are critical for boosting India’s export competitiveness and supporting the government’s long-term goal of becoming a major global manufacturing and supply chain hub.
India has been accelerating investments in transport infrastructure through projects such as dedicated freight corridors, Bharatmala highways, Sagarmala port connectivity initiatives, inland waterways, and multimodal cargo terminals.
Logistics sector stakeholders said continued infrastructure upgrades and adoption of technology-driven supply chain solutions will further improve freight efficiency and help reduce overall logistics expenditure as a percentage of GDP in the coming years.
