Regions linked by DFCs, Eastern and Western Economic Corridors and industrial belts across Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh are witnessing momentum. Despite geopolitical uncertainties, this period of realignment offers a window of opportunity for India, says Arun Kumar, President, AMTOI.
CT Bureau
How do you describe the current state of multimodal logistics?
India’s multimodal logistics sector has made strides in recent years, driven primarily by the development of physical infrastructure. To truly unlock its potential and elevate India to global standards, focus must be laid on streamlining and modernising the regulatory framework. Harmonising physical infrastructure with efficient, technology-driven and trade-friendly regulatory processes will ensure that multimodal logistics in India becomes a global benchmark for integration, cost-efficiency and sustainability.
Which regions show promise for multimodal growth?
The growth of logistics sector is intrinsically linked to the growth of the economy and with India on track to become the third-largest economy in the world, every logistics corridor, domestic and global holds strategic importance. As prosperity increases, so does consumption, production and trade volumes, all of which fuel demand for efficient logistics solutions. In this connection, multimodal logistics emerges as a key enabler of speed, cost-efficiency and sustainability.
Domestically, regions connected by the Dedicated Freight Corridors (DFCs), the Eastern and Western economic corridors and industrial belts across Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh are witnessing momentum. Internationally, India’s efforts to fortify connectivity through initiatives such as International North-South Transport Corridor (INSTC), BIMSTEC, and the India-Middle East-Europe Economic Corridor show potential. Despite the current global geopolitical uncertainties, this period of realignment offers a window of opportunity for India and other emerging economies to reposition themselves.
How have PMGS, DFCs and Bharatmala impacted MTOs?
PMGS, DFCs and Bharatmala have been gamechangers in transforming India’s logistics landscape, and their impact on Multimodal Transport Operators (MTOs) is profound. PM Gati Shakti leverages India’s strengths in IT and geospatial tech to bring all infrastructure planning onto a single digital platform. Much like how UPI revolutionised banking sector in India, PM Gati Shakti is all set to revolutionise infrastructure development by promoting integrated planning, real-time tracking and data-driven decision-making.
DFCs, once fully operational, will enhance the efficiency of freight movement, especially across the hinterlands. For MTOs, this translates into faster transit time, reduced congestion and better multimodal link at key junctions. Bharatmala has shown its value by improving road link. The way we perceive distance in India—what was once calculated in kilometres is now measured in travel time. The paradigm shift is a testament to the success of this infrastructure push.
Are govt policies and regulations supportive enough for MTOs to scale efficiently?
While there has been some progress, the pace of regulatory reforms have not kept up with the development of physical infrastructure. This imbalance remains a concern. The regulatory ecosystem still poses challenges for the Multimodal Transport Operators seeking to scale efficiently and deliver the full value that modern infrastructure can support. The country is a fast-growing economy and with public funds being invested heavily into capital-intensive infrastructure, maximising RoI must be a priority. This could happen if the business environment is made conducive. The government’s role must evolve from that of a regulator to a facilitator. This shift is not about policy tweaks, it requires a change in mindset. If we can align our regulatory mindset with our infrastructure ambitions, India’s logistics sector and the MTOs can lead the world.
What reforms would you like to witness for cross-border and domestic intermodal transport operations?
There is no shortage of operational and policy reforms that could ease multimodal ops, cross-border and domestically. But at the heart of all reform lies one essential ingredient: Mutual trust between the government and the industry. For long, the relationship was marred by mistrust. Unless the government starts treating the industry as a responsible stakeholder and not as subject of regulation, any reform will be piecemeal and its impact diluted. The focus should shift from control to collaboration.
What are the pain points affecting India’s performance in logistics indices?
LPI is more than just a metric—it reflects the health and efficiency of logistics ecosystem. While it is encouraging to see the country go up the ranking, we must not lose sight of the broader picture. The gap between 38 to first rank demands introspection. Early on, the government cited a logistics cost of 13 to 14 per cent of GDP and cantered its strategy solely on cost reduction. The sector continues to suffer from fragmented regulatory frameworks across ministries and states. Overregulation and under-facilitation. It shows a lack of trust between regulators and service providers. To address it, we must dig deeper, fix the mindset governing how we approach logistics policy.
