India reduces logistics cost

India has significantly reduced its logistics costs to 10-10.7% of GDP in FY26, down from 13-14% a decade ago, primarily due to a cumulative investment of $360 billion in infrastructure development. This has resulted in annual savings of $123-133 billion and an improved global Logistics Performance Index ranking from 54th in 2014 to 38th in 2023. Despite these advancements, the Confederation of Indian Industry-Knight Frank report highlights that India's logistics supply chain still needs to achieve optimal efficiency. The report emphasizes the critical role of Multimodal Logistics Parks (MMLPs), stating that India will require 216 MMLPs to meet its 2047 freight modal shift targets. Continued overdependence on road transport, delays in MMLP development, and inadequate first- and last-mile connectivity remain challenges. Ashwani K Gupta of Adani Ports & SEZ noted that MMLPs offer a 43% total cost advantage over road freight on DFC corridors and drastically reduce terminal dwell times, making rail a more reliable logistics channel for high-growth sectors.