India Overhauls Logistics to Cut Costs and Boost Global Trade Amid Supply Chain Disruptions

Officials note that improved logistics are crucial for India's economic growth, enhancing global competitiveness and strengthening trade linkages. File Photo.

Global conflicts in West Asia are affecting energy markets and supply chains, prompting India to accelerate reforms in its logistics sector. The government is pushing for a more efficient, integrated system aimed at reducing costs and improving transparency across the supply chain.

Currently, logistics costs in India represent nearly 8 percent of GDP, totaling around 24 lakh crore rupees, highlighting the economic impact of inefficiencies. To tackle this, policymakers are combining infrastructure investments, digital platforms, and institutional reforms to create a streamlined, data-driven logistics network.

The National Logistics Policy and PM GatiShakti initiatives have been pivotal in driving this transformation. These programs aim to unify fragmented planning, remove systemic inefficiencies, and facilitate smoother connections between states, cities, and transport modes.

Officials note that improved logistics are crucial for India’s economic growth, enhancing global competitiveness and strengthening trade linkages. The government’s multi-modal logistics program encourages regional planning to optimize operations, reduce bottlenecks, and cut costs for businesses and consumers.

Prime Minister Narendra Modi recently emphasized that the current global energy and supply chain challenges require careful management, public awareness, and consistent efforts to maintain resilience. With ongoing reforms, India seeks not only to mitigate immediate disruptions but also to lay the foundation for a modern logistics system capable of supporting long-term economic expansion.