India's Infrastructure Investment Cuts Logistics Costs by a Third

India's extensive infrastructure investments totaling approximately USD 360 billion have reduced logistics costs to 10-10.7% of GDP by FY 2026, according to a CII Knight Frank report. The report highlights the necessity for more Multimodal Logistics Parks to further enhance logistical efficiency and meet future freight targets.

India's massive infrastructure investments, totaling almost USD 360 billion over the past decade, have successfully reduced logistics costs significantly, now accounting for 10-10.7% of GDP in FY 2026, as reported by CII Knight Frank. This strategic approach has propelled India forward in the Logistics Performance Index, climbing from 54th in 2014 to 38th in 2023.

The report emphasizes the critical role of Multimodal Logistics Parks (MMLPs) in improving logistical efficiency and suggests that 216 MMLPs are needed to reach freight modal shift targets by 2047. Despite improvements, challenges such as an over-reliance on road transport and inadequate connectivity remain. The report also notes that MMLPs enhance logistical efficiency by reducing costs and dwell times, crucial for dynamic sectors like FMCG, automotive, and e-commerce.