Cumulative investments of nearly $360 billion in infrastructure development over the last decade have resulted in estimated annual savings of $123–133 billion for the Indian economy, a joint report revealed. The report, by CII and Knight Frank India, highlighted that India’s logistics costs have decreased to about 10–10.7% of GDP in FY 2026, down from 13–14% of GDP a decade ago due to these investments. This improvement has also elevated India’s global logistics performance index ranking from 54th in 2014 to 38th in 2023, showcasing enhanced connectivity and trade facilitation.
Despite these advancements, India’s logistics supply chain still lacks optimal efficiency, the report noted. Multimodal Logistics Parks (MMLPs) are identified as crucial in enhancing India’s logistics efficiency. The report emphasized that India needs 216 MMLPs, each with an average capacity of 16–17 MMT per annum, to meet its 2047 freight modal shift targets. Challenges such as overreliance on road transport, delays in MMLPs development, and inadequate first- and last-mile connectivity hinder the transition of cargo movement to rail and other efficient transport modes.
Ashwani Gupta, Chairman of CII National Committee on Ports and Shipping and CEO of Adani Ports and SEZ, highlighted the shift in challenges from infrastructure deficit to a lack of connective nodes. He emphasized that aggregating fragmented cargo through MMLP-grade interchange could yield a significant 43% total cost advantage over road freight on DFC corridors. To achieve the National Rail Plan’s goal of a 45% freight modal share by 2047, India must expand its intermodal network aggressively.
Countries like Germany, the Netherlands, and Singapore have shown that integrated logistics parks enhance supply chain integration, operational efficiency, and modal balance. The report recommended boosting private sector involvement in MMLPs by expediting project implementation, creating anchor demand through industrial clustering and freight aggregation, and addressing critical first- and last-mile connectivity gaps.
