‘To achieve target of USD 30 trillion GDP by 2047, the logistics sector will need to support 4x+ growth in freight movement’

Akash Singh, Partner, Kearney says, “India ranks 38th in the Logistics Performance Index, much lower than USA (17th) and China (19th) due to lagging logistics infrastructure and services. The average speed on India’s NHs is 30-35 kmph compared to ~90 kmph in USA, service levels in Railways are low and multi-modal infrastructure is limited. To achieve the target of USD 30 trillion GDP by 2047, the logistics sector will need to support 4x+ growth in freight movement. Under PM GatiShakti, plans of infrastructure ministries are being integrated using GIS-technology. Ministries have laid out plans to increase access-controlled highways to 50,000 km (12x), port capacity to 10,000 MTPA (4x), develop 21 greenfield airports, energy/ mineral/ cement railway corridors and 35 multi-modal logistics parks for providing connectivity to industrial nodes. Capex by the central government has grown to Rs. 11.1 Lakh Cr. (5x in 11 years). To leapfrog the leading economies, infrastructure will need to precede the freight growth and develop by 2037 supported by government capex and private investment.
National Logistics Policy focuses on improving efficiency in processes, digital systems, and regulatory framework. Unified Logistics Interface Platform has democratized access to government datasets for logistics and LEADS is pushing the States. Sustained initiatives across logistics infrastructure and services by all stakeholders will help achieve the vision of ‘Viksit Bharat’.”
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