Amid disruption, govt emphasis on improving logistics

New Delhi: Amid disruptions to global supply chains due to the West Asia conflict, the government has stepped up efforts to strengthen India’s logistics ecosystem and reduce costs, currently estimated at 7.97 per cent of GDP, or about Rs 24.01 lakh crore.

Officials said the sector is undergoing structural transformation driven by coordinated policy reforms, institutional realignment, digital platforms and large-scale infrastructure planning. These initiatives aim to tackle long-standing issues such as fragmented planning, inefficiencies across transport modes, limited supply chain visibility and high logistics costs.

India’s logistics reforms are anchored in integrated policies and infrastructure initiatives designed to improve efficiency, cut costs and enhance supply chain connectivity. Addressing an event on March 12, Prime Minister Narendra Modi said the ongoing regional conflict had triggered a global energy crisis and disrupted supply chains, underscoring the need for resilience and coordinated action.

Officials noted that programmes like the National Logistics Policy and PM GatiShakti have accelerated the shift towards a more integrated and data-driven logistics framework.

The government’s Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme is also advancing integrated planning at state and city levels. Pilot projects in eight cities are mapping freight-intensive activities such as e-commerce deliveries, warehousing clusters and transport corridors to improve efficiency and reduce costs.

The focus remains on data-driven planning, better coordination, congestion reduction, adoption of cleaner transport solutions and improved alignment between freight and passenger movement, officials added.