New Delhi, June 5: India’s logistics costs have moved into the 8 to 9 per cent range of GDP, but further gains will depend on moving goods faster and making multimodal transportation work more effectively on the ground, according to Rajesh Menon, Associate Director, DPIIT Logistics Division, Ministry of Commerce & Industry.
Speaking at the Indian Chamber of Commerce’s Excellence in Motion: Redefining the Future of Logistics in India forum in New Delhi, Menon noted that average truck speeds on key freight corridors remain in the range of 50 to 60 kmph, compared with international benchmarks of 70 to 80 kmph. He also pointed out that while multimodal transportation offers clear cost advantages, many of those benefits are yet to be fully realised due to operational challenges.
Rajesh Menon, Associate Director, DPIIT Logistics Division, Ministry of Commerce & Industry, said,
“The next set of gains will come from addressing the gaps that continue to exist across the logistics ecosystem. Industry, policymakers and implementing agencies need to work together to solve practical challenges on the ground and ensure that logistics reforms translate into tangible benefits for businesses.”
The forum brought together policymakers, infrastructure developers, logistics companies and industry leaders to examine how India’s logistics ecosystem can respond to changing trade patterns, infrastructure requirements and supply chain risks.
Offering an industry perspective, Kanishka Sethia, Chairman, ICC National Logistics & Supply Chain Committee and Director & CEO, Western Carriers (India) Limited, said India’s logistics market is estimated to exceed USD 380 billion, supported by manufacturing growth, infrastructure investment and deeper integration with global value chains. He highlighted the contribution of initiatives such as the Dedicated Freight Corridors, PM Gati Shakti and the National Logistics Policy in improving freight movement across the country. Sethia also noted that the Dedicated Freight Corridor linkage to JNPT was completed earlier this year, improving connectivity between northern India and major ports, while rail freight is increasingly becoming a competitive alternative to road transport on several routes.
Kanishka Sethia, Chairman, ICC National Logistics & Supply Chain Committee and Director & CEO, Western Carriers (India) Limited, said,
“Recent developments in the Middle East and disruptions across major shipping routes have shown how quickly global events can affect supply chains. For India, the challenge is not limited to improving efficiency. It is equally about building networks that can absorb shocks, adapt to uncertainty and continue supporting trade and manufacturing activity.”
Highlighting developments in the maritime sector, Sushanta Purohit, Chairman, V.O. Chidambaranar Port Authority, outlined ongoing investments at the port, including the proposed ₹15,000 crore Outer Harbour Project, offshore renewable energy infrastructure and the development of a shipbuilding and maritime cluster in Tuticorin. He also pointed to the port’s designation as a Green Hydrogen Hub and Offshore Renewable Energy Hub, alongside investments in renewable energy, green hydrogen and digital technologies. The port has implemented a Digital Twin platform and is pursuing projects in green methanol and clean energy as part of its expansion plans.
Sushanta Purohit, Chairman, V.O. Chidambaranar Port Authority, said,
“India’s trade ambitions will require ports to expand capacity, adopt new technologies and prepare for emerging opportunities in areas such as renewable energy and green fuels. The investments being made today are aimed at ensuring that maritime infrastructure keeps pace with future demand.”
Addressing the future of freight transportation, Abhijeet Sinha, Program Director, Ease of Doing Business and National Highways for Electric Vehicles (NHEV), highlighted the development of a 5,500 kilometre electric highway network aimed at enabling long distance freight movement using green energy and reducing dependence on conventional fuels. He also stressed the growing role of decarbonisation, digitalisation and geospatial intelligence in logistics planning as businesses seek greater predictability and resilience in their operations.
Abhijeet Sinha, Program Director, Ease of Doing Business and National Highways for Electric Vehicles (NHEV), said,
“Energy security is no longer separate from logistics planning. Decisions around sustainability, fuel diversification and freight movement are increasingly shaping competitiveness across the sector. Building freight corridors powered by clean energy will help create a logistics network that is better prepared for future disruptions.”
While the speakers approached the subject from different perspectives, a common message emerged through the discussions: India’s next logistics gains will come not from new announcements alone, but from improving execution, strengthening multimodal connectivity, preparing infrastructure ahead of demand and reducing exposure to global supply chain disruptions.