India’s Logistics Costs to Drop to 9% of GDP by 2026
India aims to bring down its logistics costs from 16% of GDP to 9% within the next two to three years, as announced by Union Minister Nitin Gadkari. This ambitious target seeks to strengthen economic competitiveness by streamlining the nation’s supply chain infrastructure.
Infrastructure Development Initiatives
The government is accelerating infrastructure projects, including highways, expressways, and Multi-Modal Logistics Parks (MMLPs), to improve connectivity and ensure efficient goods movement. Key among these projects is the Sagarmala Programme, focusing on enhancing port-led development to optimize maritime logistics. The initiative is designed to reduce transportation costs and transit times, boosting trade efficiency.
Policy Reforms and Technology Integration
Alongside infrastructure development, the government is implementing critical policy reforms to enhance logistics operations. The establishment of a dedicated logistics division under the Ministry of Commerce and Industry underscores its commitment to cohesive management of logistics strategies.
Plans to develop an integrated logistics e-marketplace portal will further streamline operations by connecting buyers, logistics service providers, and government agencies on a unified platform. This digital transformation will enable real-time tracking and ensure cost-effective services.
Transforming Economic Efficiency
The reduction in logistics costs is expected to enhance India’s position in global markets, making goods more competitive. Businesses can benefit from improved supply chain efficiency, while consumers may see reduced costs of goods and services.
These measures are poised to create a more efficient and globally competitive logistics framework, contributing to India’s economic growth trajectory.
