Driving Viksit Bharat: How Policy Reforms and Infrastructure Investments are Revolutionizing India's Logistics Sector

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Posted by NewAdmin on 2025-03-27 08:24:12 |

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Viksit Bharat 2047 is India’s ambitious roadmap to becoming a self-reliant, prosperous economy by 2047, focusing on economic growth, technological advancements, infrastructure development, social empowerment, and sustainability. The logistics industry plays a crucial role in achieving this vision. Currently, logistics costs account for 13-14% of India’s GDP, but the government has implemented strategic policies to reduce these costs to around 8-10%. This will help position India among the top 25 countries in the World Bank's Logistics Performance Index by 2030.

India’s logistics market is poised for significant growth, expected to rise from $317.26 billion in 2024 to $484.43 billion by 2029, reflecting an annual growth rate of 8.8%. With the country’s e-commerce market projected to reach $325 billion by 2030, a robust logistics infrastructure is essential to support this exponential growth. Historically, India’s logistics system operated through separate road, rail, air, and water networks. However, recent investments in infrastructure have integrated these modes of transportation, enabling multimodal logistics, improving transit times, cutting costs, and enhancing supply chain agility.

Policy Reforms Transforming Logistics

The Indian government has implemented a series of policy reforms to streamline logistics operations, reduce bottlenecks, and foster sectoral growth. The PM Gati Shakti National Master Plan is one such initiative. It aims to achieve operational excellence by ensuring seamless connectivity and focusing on holistic infrastructure development. This initiative promotes inland waterways and supports projects like Sagarmala and Bharatmala, which enhance connectivity across multiple transportation modes.

The National Logistics Policy (NLP), which complements the Gati Shakti Plan, seeks to digitize supply chains, simplify regulatory processes, and reduce logistics costs from 14-16% of GDP to single-digit figures. The NLP is positioning India as a global logistics hub by emphasizing technology, transparency, and sustainability. Additionally, the government’s Maritime India Vision 2030 aims to strengthen India’s maritime infrastructure, modernize ports, boost inland waterways, increase shipping tonnage, and improve overall shipping facilities. To support this, the government introduced a Maritime Development Fund of Rs 25,000 crore in the recent budget to focus on domestic shipbuilding and reduce reliance on foreign vessels. These policies are designed to enhance maritime competitiveness and develop green, sustainable port and shipping operations.

Infrastructure Investments Driving Growth and Efficiency

As part of its push to position India as a global logistics powerhouse and realize the goals of Viksit Bharat, significant infrastructure investments have been made. Key developments include:

• Bharatmala Pariyojana: This initiative has enhanced regional connectivity by constructing over 18,000 km of highways (as of October 2024). The improved road infrastructure has transformed businesses along these routes, promoting the establishment of multimodal logistics parks, hubs, and warehouses. This development has spurred economic corridors, reducing logistics costs and transit times.
• Dedicated Freight Corridors (DFCs): These high-speed railway corridors have revolutionized freight movement by offering exclusive networks for cargo trains. With average speeds of 55-60 km/h, these corridors significantly improve the efficiency and cost-effectiveness of freight transportation, a marked improvement from the previous 18-20 km/h speed of Indian Railways.
• Technology Integration: Infrastructural advancements also involve integrating emerging technologies. AI-driven route optimization, IoT-enabled fleet management, blockchain-powered tracking systems, and the Unified Logistics Integrated Platform have significantly reduced operational inefficiencies, making logistics more predictable, integrated, digital, and cost-efficient.

Looking Ahead

While India’s logistics sector has made remarkable progress through policy reforms and infrastructure investments, further development is necessary. Addressing infrastructure gaps, particularly in last-mile connectivity and warehousing, remains a challenge. Embracing emerging technologies and ensuring sustainability will be essential to meeting the vision of a self-reliant and prosperous nation, as outlined by Viksit Bharat.

With continued strategic planning, innovation, and investment, India’s logistics industry is well on its way to becoming a key driver of the country’s growth and development.

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