How India Is Making Logistics Faster, Cheaper

India has ambitious plans to bring down logistics costs in order to be more globally competitive, while ensuring faster movement of goods and lower emissions.

Getting there is going to require expanding road and rail networks, setting up new logistics parks for rail and waterway hubs, and bringing different government departments to think and act unanimously. These were plans detailed in this year’s budget.

While there is a long way to go, with recurring targets set over the next two decades, it stands to transform a sector that has become increasingly integral to daily life.

“The plan can help businesses cut down logistics cost, track movement of goods more efficiently, and have access to information and data on upcoming connectivity projects, business hubs and industrial areas, to strategically invest in warehouses at suitable locations,” says Chandranath Dey, Head of Operations and Business Development, India, JLL.

According to estimates by a government institution, if the country manages to reduce logistics cost from 14% of GDP to 10%, it can save INR 10 lakh crore (approximately USD 132 billion) and significantly reduce carbon emissions.