$360bn Infra Investments Slash Logistics Cost To 10% of GDP: Report
Reflecting this progress, the report said that India’s position in the global logistics performance index or LPI improved from 54th in 2014 to 38th in 2023. “As a result of these sustained efforts, the country's logistics ecosystem has improved considerably, contributing to enhanced connectivity, trade facilitation, and supply chain performance,” it added
New Delhi: India's cumulative investments of nearly $360 billion in infrastructure development over the last decade has significantly slashed India's logistics cost to 10-10.7 percent of GDP in FY 2026, from 13-14 per cent a decade ago, a report released by CII Knight-Frank said on Friday.
Reflecting this progress, the report said that India’s position in the global logistics performance index or LPI improved from 54th in 2014 to 38th in 2023. “As a result of these sustained efforts, the country's logistics ecosystem has improved considerably, contributing to enhanced connectivity, trade facilitation, and supply chain performance,” it added.
Despite these improvements, the report noted that India's logistics supply chain is yet to achieve optimal efficiency. Noting that the multi-modal logistics parks (MMLPs) are central to improving India's logistics efficiency, the report further said that India will require 216 MMLPs, each with an average capacity of 16-17 MMT per annum, to achieve its 2047 freight modal shift targets.
The report highlighted that continued over-dependence on road transport for freight movement, delays in the development of integrated MMLPs, and inadequate first- and last-mile connectivity continue to limit the shift of cargo movement towards rail and other efficient modes of transport.
“The core challenge is no longer an infrastructure deficit, but a lack of connective nodes. The MMLPs are the essential connective tissue required to convert rail's line-haul cost advantages into door-to-door competitiveness,” it said.