India’s logistics ecosystem has entered a transformative phase under PMGS and NLP. Integrated multimodal planning has built a strong foundation, but effective execution — improving last-mile connectivity, regulatory alignment, and digital integration — will determine real gains in freight and supply chain performance.
Ritika Arora Bhola
India’s air freight and logistics landscape is undergoing a structural adjustment and at the heart of this shift lie PM GatiShakti and National Logistics Policy. Conceived as a master plan to integrate infrastructure planning across ministries and modes, the initiative has altered how highways, rail corridors, ports, airports, industrial clusters, and logistics parks are implemented.
For decades, fragmented planning, siloed decision-making, uneven inter-agency coordination have constrained cargo velocity and inflated logistics costs. PMGS’ integrated, GIS-based digital platform addressed this disconnect by bringing multiple ministries and states onto a unified planning framework. The result — improved alignment between infra creation and economic demand centres.
Industry leaders agree that the initiative’s most significant contribution has been synchronisation.
Tangible gains
Nomita Kothari, CEO, New Globe Logistik LLP, said that coordinated development across transport corridors has improved multimodal linkage and cargo predictability. DFCs, port connectivity projects, and economic corridor planning is easing congestion and strengthening transit reliability — critical for exporters and time-sensitive supply chains.
Sakshi Gupta, Country Manager
India, Air Logistics Group, points to the integrated master planning platform as a turning point. By aligning roads, railways, ports, airports, and logistics infra under a unified structure, duplication has reduced and project timelines have accelerated. The rollout of Gati Shakti Multimodal Cargo Terminals (GCTs) mark another milestone, facilitating rail-linked logistics hubs that improve cargo consolidation, lower handling costs, and reduce transit times.
Rajni Patwardhan, Head, Marketing, Kale Logistics Solutions, said Logistics costs have moderated to an estimated 7.8–8.9 per cent of GDP, India’s Logistics Performance Index (LPI) ranking has improved, and multimodal connectivity continues to expand through new highways, rail corridors, and
logistics hubs.
Padma Handa, Director, Hans Infomatic, emphasised that the convergence of physical and digital infra has reduced fragmentation. For freight ops, including air cargo, the alignment between infra corridors and manufacturing clusters is strengthening supply chain resilience and efficiency. Emphasis in the Union Budget on logistics efficiency, warehousing expansion, and multimodal integration reinforces this long-term vision. Even as planning integration advances, execution remains the defining challenge.
Implementation gap
The consensus across the industry is clear: the blueprint is strong, but the ground reality requires sharper coordination. Execution varies across regions due to differences in state-level processes, land acquisition timelines, and regulatory approvals. While central coordination has improved, operational readiness around logistics hubs and cargo gateways remains uneven.
Last-mile delivery is the most persistent bottleneck. Although trunk infra has improved, linkages to industrial clusters, ICDs, logistics parks, ports, and production hubs remain inconsistent. These gaps dilute the seamless cargo flows envisioned under the master plan.
Infra creation in certain segments is progressing faster than operational coordination and institutional reform. Without parallel investments, skilling, technology integration, and physical corridors alone cannot unlock full efficiency gains, observed Gupta.
Freight movement via road continues to dominate India’s cargo landscape. While investments in rail and waterways are expanding, accelerating modal shift is essential for sustainable efficiency improvements. Infra development should be complemented by service reliability, pricing rationalisation, and policy
incentives that encourage adoption of rail, coastal shipping, and inland waterways, added Kothari.
The missing link
Beyond physical connectivity lies a second layer of complexity — digital integration. While PMGS planning backbone is robust and GIS-driven, live freight systems across ports, railways, customs, airports, and private operators, among others, are not yet fully interoperable. Fragmented digital platforms prevent seamless real-time coordination between transport modes, increasing dwell time and process redundancies.
Cargo efficiency demands ‘connected’ digital corridors. Rail, road, ports, airports, and customs systems must exchange data in real-time to reduce bottlenecks. Without interoperable systems, multimodal connectivity remains conceptually aligned but operationally fragmented, added Patwardhan.
The need for deeper ecosystem-wide technology adoption, seamless data exchange, and real-time cargo visibility across air, sea, road, rail, warehousing, and border touchpoints are critical to achieving end-to-end efficiency. Inclusive digital participation, particularly among MSMEs and smaller operators, — will enhance transparency and operational predictability, Handa asserted.
Expressing similar sentiments, Kothari said even though planning has become data-driven, regional transporters and freight operators are not yet fully integrated into digital platforms. Building digital capability across the logistics ecosystem is essential to unlocking the full value of infrastructure. Emphasis in the Union Budget on logistics efficiency, warehousing expansion, and multimodal integration reinforces this long-term vision.
Regulatory complexities
Even as planning integration reduces duplication at the macro level, execution still encounters regulatory friction. Land acquisition delays, environmental clearances, and multi-agency approvals extend project timelines. Variations in the state-level regulatory processes create uncertainty, thereby impacting freight predictability.
Stronger Centre–state collaboration, time-bound single-window clearances, and structured private-sector participation have been cited as necessary next steps. Establishing clearer accountability mechanisms and institutionalising time-bound inter-agency coordination could improve implementation speed.
Pointing out regulatory complexity in EXIM processes and uneven digital adoption across states as factors diluting efficiency gains, Gupta said simplification, standardisation, and harmonisation of procedures across areas will be key to translating planning gains into operational speed.
Multimodal potential
Despite investments in rail corridors and alternative transport modes, India’s cargo movement is dominated by road freight. Infrastructure expansion will not drive modal shift. Rail-linked cargo terminals, coastal shipping corridors, and inland waterways should offer competitive pricing, predictable service schedules, and efficient last-mile linkages, to attract consistent cargo volumes.
The Gati Shakti Multimodal Cargo Terminals are designed to encourage this shift, but adoption depends on reliable operations and integrated planning beyond trunk corridors. With congestion, and without balanced multimodal participation, environmental pressures may persist.
The potential of smart, demand-driven off-airport infrastructure such as AFSs aligned with multimodal corridors can help decongest airports, streamline cargo processing, and improve first- and last-mile connectivity for air cargo ops, emphasised Handa.
Infra to operations
Industry leaders stressed infra speed must now translate into operational speed. The foundation — integrated planning across ministries and states — is in place. The next phase must focus on operational synchronisation.
This includes:
- Strengthening first- and last-mile connectivity
- Ensuring real-time digital interoperability across stakeholders
- Incentivising multimodal adoption
- Harmonising regulatory processes
- Investing in physical and digital capacity building
Technology will play a defining role in this transition. Unified air cargo community platforms and interoperable data ecosystems can connect stakeholders across ports and airports, creating a single digital backbone for air cargo flow.
However, digital integration must extend beyond large operators. Smaller transporters, regional freight companies, and MSMEs should be brought into the digital fold to prevent ecosystem fragmentation.
The road ahead
PMGS has shifted India’s infra planning paradigm. By integrating 44 Union ministries and aligning states on a common digital platform — it has reduced fragmented planning and accelerated cross-ministerial
coordination.
The blueprint for infra-led logistics growth is stronger than ever. The next phase should prioritise disciplined execution, coordination, and deeper digital integration. Infra corridors must link smoothly to live freight systems. Planning alignment must translate into reductions in dwell time, modal imbalance, and regulatory friction. If these challenges are addressed, PMGS has the potential to redefine India’s logistics competitiveness — lowering costs, improving cargo velocity, fortifying supply chain resilience, and positioning India as a globally reliable trade hub.
The puzzle of integrated planning may be largely solved. The task now is ensuring that every kilometre of corridor, every cargo terminal, and every digital interface works in synchrony — turning infrastructure ambition into operational excellence.
