CHARTING INDIA'S LOGISTICS LEAP Building a future-ready supply chain for a $7-trillion economy.

Building a future-ready supply chain for a $7-trillion economy.

- Shashi Kiran Shetty Founder and Chairman, Allcargo Group

THE LOGISTICS sector will play an outsized role in fulfilling India's vision to become a $7-trillion economy by 2030. Often termed a key enabler of economic growth, logistics is more than the movement of goods. A robust logistics and supply chain ecosystem—comprising transportation, warehousing, inventory management, and packaging—fuels industrial productivity, boosts trade competitiveness, and builds investment attractiveness.

Over the past decade, the sector has steadily transformed due to policy reforms, infrastructure upgrades, and technology adoption. From 54 in 2014, India rose to 38th among 139 countries in the World Bank's 2023 Logistics Performance Index. In the International Shipments category, India surged from 44 in 2019 to 22 in 2023. In shipment timeliness, the country jumped from 52 in 2018 to 35 in 2023.

As a result, manufacturing, retail, agriculture, and e-commerce sectors have developed crucial supply chains and market linkages across geographies, banking on logistics services. Although logistics has become vital, significant ground remains to be covered as the country sets its sights on meeting economic goals, making its presence felt as a global manufacturing and trade hub, or strengthening its position as a global logistics hub.

Several improvements have stemmed from focussed efforts to reduce port dwell times, streamline cargo processing, and modernise infrastructure. Turnaround times at major ports halved from 94 hours in FY14 to 48.06 hours in FY24. Since FY15, berth-day output and cargo handling capacity have increased by 52% and 87%, respectively. Major ports are clocking double-digit annual growth, showcasing India's growing role in global trade.