India’s logistics sector is breaking traditional bottlenecks and becoming smarter, faster, and more inclusive by using cutting-edge technology, transformative infra, and supportive policy measures. This evolution is reducing costs, boosting efficiency, and creating opportunities for medium and smaller players.
Of late, logistics is embracing AI, ML, IoT, and blockchain, which enable real-time tracking, predictive analytics, and seamless coordination across the supply chains. Digital freight monitoring platforms, cloud-based logistics management solutions are optimising fleet utilisation, warehouse control, and last-mile delivery, thereby, rapidly reducing inefficiencies.
Introduction of Unified Logistics Interface Platform (ULIP) under the PMGS exemplifies this shift. ULIP offers a centralised digital space for stakeholders to include freight operators, transporters, and warehouses to utilise real-time cargo data, bringing transparency and speedier movements. Blockchain applications are increasingly being adopted to enhance security, streamline documentation, and reduce delays in freight clearances, improving trust within India and abroad.
India’s multimodal logistics infra is undergoing a revolution. The ongoing development of DFCs such as the Eastern, Western, and the proposed North-South and East-West Corridors, facilitates faster freight movement by rail — a cheaper and more sustainable mode of transportation.
Complementing the DFCs are the MMLPs, which consolidate rail, road, air, and inland waterways-based transport modes into integrated hubs. These hubs streamline cargo transfers, minimise times, and reduce traffic congestion on highways. Ports, highways and inland waterways contribute towards reducing delivery timelines under PMGS.
Hyperlocal warehousing and transshipment hubs support rising e-commerce demands and ensure fast last-mile delivery to consumers. Together, these infrastructure improvements account for shortened transit times and reduced logistics costs, aiming to lower the sector’s drag on India’s GDP from between 13 and 14 per cent to under 8 per cent by 2030.
A feature of India’s ongoing logistics transformation is its emphasis on inclusivity. The government seeks to promote MSMEs by facilitating easier credit, digital onboarding, and marketplace integration, through platforms like ONDC. This democratises access to the formal logistics economy, allowing smaller transport operators and warehouse providers to flourish alongside larger players.
Skill development programs such as Skill India and Pradhan Mantri Kaushal Vikas Yojana are contributing towards training logistics professionals on digital tools, safety standards, and operational best practices, creating a more competent workforce ready to embrace advanced technologies in time with global best practices.
Amidst growing environmental concerns, green logistics is emerging as a fundamental pillar. Adoption of EVs, optimisation of routes through AI to cut fuel usage, and introduction of renewable energy in warehouses help reduce the carbon footprint. The NLP encourages use of rail and waterways because they are lower-emission options. Long-standing choke points and bottlenecks in the logistics network are being removed through improved infrastructure, inclusive policies, and technological infusion. The same has led to shortened delivery periods, reduced transit losses, lowered costs, and vibrant logistics ecosystem providing broader and fairer opportunities particularly for smaller operators.
