According to the World Bank’s Logistics Performance Index (LPI) 2023, Indian ports have reduced their average turnaround time to 0.9 days, which is better than many developed nations, including the United States (1.5 days), Germany (1.3 days), and Australia (1.7 days).
Efficient logistics infrastructure is a key driver of economic growth, trade competitiveness, and industrial expansion. Recognizing this, the Modi government has undertaken a series of transformative initiatives aimed at enhancing India’s logistics sector. These reforms have significantly improved India’s ranking in the World Bank’s Logistics Performance Index (LPI), demonstrating the nation’s growing efficiency in global trade. In the 2023 LPI, India moved up to the 22nd rank in the International Shipments category and secured the 38th rank overall. The turnaround time at Indian ports has improved dramatically to 0.9 days, surpassing developed nations like the USA, Germany, and Canada. These achievements underscore the effectiveness of policies and infrastructure advancements initiated under the Modi government.
1. Sagarmala Programme: Enhancing Port-led Development
The Sagarmala Programme, launched in 2015, is a flagship initiative aimed at transforming India’s logistics sector by leveraging its vast coastline and inland waterways. This port-led development strategy focuses on modernizing port infrastructure, increasing efficiency, and reducing logistics costs. The programme has led to the development of new deep-draft ports, expansion and modernization of existing ports, and increased private sector participation through public-private partnerships (PPP). By enhancing multimodal connectivity, Sagarmala ensures seamless cargo movement through integrated rail, road, and inland waterway linkages.
A significant achievement of the programme is the improvement in port turnaround time—a key metric for logistics efficiency. According to the World Bank’s Logistics Performance Index (LPI) 2023, Indian ports have reduced their average turnaround time to 0.9 days, which is better than many developed nations, including the United States (1.5 days), Germany (1.3 days), and Australia (1.7 days). The programme also promotes coastal shipping and inland water transport, reducing dependence on road freight and cutting down logistics costs. With over 800 projects worth ₹5.48 lakh crore planned under Sagarmala, the initiative is set to further strengthen India’s position as a global maritime hub.
2. Bharatmala Pariyojana: Revolutionizing Road Connectivity
The Bharatmala Pariyojana, launched in 2017, is a comprehensive road infrastructure programme designed to enhance highway connectivity, reduce transportation costs, and improve freight movement across India. With a planned investment of over ₹10 lakh crore, Bharatmala is transforming the country’s logistics landscape by constructing expressways, economic corridors, border and coastal roads, and feeder routes.
A major focus of the programme is on developing 35,000 km of highways, including 24 multi-modal logistics parks and economic corridors that connect industrial clusters, ports, and consumption centers. By reducing travel time and optimizing supply chains, Bharatmala directly impacts India’s LPI ranking. Improved road infrastructure has led to faster freight movement, lower vehicle operating costs, and increased trade competitiveness. Additionally, Bharatmala enhances port connectivity through the development of road links to major ports, enabling smoother movement of goods. The reduced reliance on congested highways and the increased adoption of access-controlled expressways contribute to faster, more reliable logistics.
3. PM Gati Shakti: A Unified Approach to Infrastructure Development
The PM Gati Shakti National Master Plan (NMP), launched in 2021, is a transformational initiative integrating various infrastructure projects across multiple ministries to achieve synchronized development. This digital, data-driven platform enables real-time coordination between road, rail, port, and air transport networks, ensuring that infrastructure projects are aligned for maximum efficiency.
One of the key benefits of PM Gati Shakti is the reduction of logistics bottlenecks, which were previously caused by fragmented planning and implementation. By streamlining approvals, eliminating inefficiencies, and improving intermodal logistics, the initiative ensures seamless movement of goods. PM Gati Shakti plays a crucial role in boosting India’s LPI ranking by reducing transit time for freight movement across major corridors, enhancing last-mile connectivity to industrial parks, logistics hubs, and ports, facilitating faster project execution through better coordination among different government departments, and encouraging investments in modern logistics infrastructure such as automated warehouses, inland container depots, and freight terminals.
With an emphasis on multi-modal logistics integration, PM Gati Shakti ensures that railways, highways, waterways, and airways work in tandem to support economic growth. It also strengthens India’s competitiveness in global trade, positioning the country as a preferred investment destination for manufacturing and exports.
4. Maritime Amrit Kaal Vision 2047: A Blueprint for the Future
The Maritime Amrit Kaal Vision 2047 is a long-term strategic framework designed to revolutionize India’s maritime sector, aligning with the principles of the blue economy. This vision serves as a comprehensive roadmap to enhance port infrastructure, modernize operations, and promote sustainability, ensuring that India remains competitive in global trade and logistics. India’s major port capacity has increased from 871 MTPA in 2014 to over 1,600 MTPA in 2023, marking a 90% growth in under a decade. The Jawaharlal Nehru Port (JNPT) Terminal has become 100% automated, reducing container dwell time by 30%, and India’s ranking in the Liner Shipping Connectivity Index (LSCI) has improved from 44th in 2014 to 22nd in 2023, reflecting enhanced global trade efficiency. With maritime investments worth ₹10 lakh crore planned by 2047, the focus will be on green energy, automation, and port-led development. Coastal cargo traffic has also witnessed a 65% increase, growing from 74 MTPA in 2015 to 123 MTPA in 2023, significantly improving domestic trade connectivity.
A key component of the vision is the expansion of port capacity, which is being achieved through greenfield and brownfield developments. Greenfield projects involve constructing entirely new ports with world-class facilities, while brownfield projects focus on upgrading existing ports to improve efficiency and accommodate larger cargo volumes. To enhance operational efficiency, the vision promotes automation and digitization of port operations, integrating smart technologies like AI-driven logistics management, automated container handling, and real-time tracking systems. Sustainability is another major pillar of this vision, with initiatives such as the development of hydrogen hubs, renewable energy adoption at ports, and eco-friendly shipbuilding practices. By reducing carbon emissions and promoting green shipping, India is setting an example for sustainable maritime development. Through greater international engagement, including participation in global maritime forums and fostering trade partnerships, the Maritime Amrit Kaal Vision 2047 seeks to establish India as a dominant force in the world’s maritime economy.
5. Logistics Efficiency Enhancement Programme (LEEP): Integrating Transport Networks
The Logistics Efficiency Enhancement Programme (LEEP) is an ambitious initiative that aims to streamline India’s logistics network by integrating different modes of transport and improving supply chain efficiency. Given the rising demands of domestic and international trade, LEEP focuses on reducing logistics costs, increasing transparency, and minimizing delays through advanced planning and digitization. As a result of LEEP, India’s logistics cost as a percentage of GDP has decreased from 14% in 2014 to 8.5% in 2023, improving global trade competitiveness. The average truck speed has increased from 25 km/h to 50 km/h, reducing transit time by 40%, while 35 Multi-Modal Logistics Parks (MMLPs) have been developed at strategic locations to integrate road, rail, and air cargo networks. To further strengthen the logistics framework, cold storage capacity has increased by 45%, supporting better supply chains in industries such as agriculture and pharmaceuticals. Additionally, RFID-based tracking systems have been deployed at all major ports and toll plazas, leading to a 30% reduction in logistics delays.
One of the key aspects of LEEP is enhanced warehouse management, ensuring optimal storage and faster dispatch of goods. The program encourages the development of state-of-the-art logistics parks, automated storage solutions, and temperature-controlled warehouses to support industries like pharmaceuticals, agriculture, and manufacturing. By fostering public-private partnerships and attracting investments into logistics infrastructure, LEEP is transforming India’s supply chain ecosystem. These measures have directly contributed to India’s improved ranking in the Logistics Performance Index (LPI) by making freight movement faster, cost-efficient, and more transparent.
6. Dedicated Freight Corridors (DFCs): Transforming Rail Logistics
The Dedicated Freight Corridors (DFCs) initiative is a game-changer for India’s rail-based logistics, enhancing cargo transportation efficiency while reducing congestion on passenger train routes. Recognizing that rail transport is a cost-effective and sustainable alternative to road transport, the government has invested heavily in developing dedicated freight corridors to handle bulk cargo movements more efficiently. The Eastern DFC (1,337 km) and Western DFC (1,506 km) are 80% complete as of 2024, with full operation expected by 2025. Freight train speeds have increased from 25 km/h to 70 km/h, reducing travel time by 40%, and the DFCs are already handling over 180 million tonnes of cargo annually, utilizing 50% of their capacity. Furthermore, the electrification of DFCs has reduced diesel consumption by 75%, significantly lowering carbon emissions. Indian Railways aims to shift 50% of total freight to DFCs by 2030, which is expected to cut logistics costs by 25%.
The Eastern DFC, running from Punjab to West Bengal, is designed to cater to coal, iron ore, and steel traffic, supporting industries in mineral-rich states. The Western DFC, stretching from Jawaharlal Nehru Port (Mumbai) to Uttar Pradesh, primarily serves containerized cargo, facilitating seamless trade movement between India’s largest port and key industrial regions. By enhancing connectivity between industrial hubs, ports, and consumption centers, the DFCs improve India’s trade competitiveness and facilitate smoother export-import operations.
7. Multimodal Logistics Parks (MMLPs): Driving Integrated Supply Chains
The establishment of Multimodal Logistics Parks (MMLPs) under the Logistics Efficiency Enhancement Programme (LEEP) is transforming India’s freight movement by integrating rail, road, air, and waterways into a seamless logistics ecosystem. These logistics hubs consolidate cargo handling and storage facilities, leading to faster delivery, lower transit costs, and reduced congestion on transport networks. The government aims to develop 35 MMLPs across key industrial corridors, with an estimated investment of ₹50,000 crore. As of 2024, 15 MMLPs are under construction, with major projects in Chennai, Bengaluru, Guwahati, and Nagpur nearing completion. The first MMLP in Jogighopa (Assam), covering 317 acres, is expected to handle 13 lakh metric tonnes of cargo annually, significantly boosting trade in the Northeast.
MMLPs provide state-of-the-art warehousing, cold storage, container terminals, and customs clearance facilities, enabling businesses to reduce inventory carrying costs by 25%. By integrating different transport modes, MMLPs help in cutting logistics costs, which have already declined from 14% of GDP in 2014 to 8.5% in 2023. With India’s freight traffic projected to reach 15 billion tonnes by 2050, these parks play a crucial role in ensuring that supply chains remain efficient and cost-effective.
8. Green Logistics and Sustainable Practices
India has taken a sustainability-first approach in its logistics development, promoting eco-friendly transport modes and adopting green energy solutions. The government has prioritized coastal shipping and inland waterways development to reduce dependency on road transport, which is a major contributor to carbon emissions. Coastal cargo movement has increased by 65%, from 74 MTPA in 2015 to 123 MTPA in 2023, reducing road congestion and fuel consumption. National Waterway-1 (Ganga) and National Waterway-2 (Brahmaputra) have witnessed a fivefold increase in cargo movement, reaching 10 million tonnes in 2023.
A significant push has been made for the electrification of railways, with 85% of India’s railway network electrified as of 2023, reducing reliance on fossil fuels and cutting carbon emissions by 33 million tonnes annually. The adoption of LNG-powered trucks and solar-powered logistics hubs further strengthens India’s commitment to green logistics. The government has set a target to make 100% of India’s major ports carbon-neutral by 2047, and several ports, including JNPT and Paradip Port, have already started running on renewable energy.
The implementation of energy-efficient warehouses and the promotion of electric vehicles (EVs) for last-mile delivery are additional measures supporting sustainable logistics. India’s Green Ports initiative has led to the installation of shore-to-ship power supply systems, reducing emissions from docked vessels by 60%. These initiatives not only align with India’s net-zero goals but also enhance the country’s reputation as a leader in sustainable trade practices.
9. Global Maritime India Summit (GMIS) 2023: Attracting Investments
The Global Maritime India Summit (GMIS) 2023 was a landmark event that reinforced India’s growing prominence in the global maritime sector. The summit, attended by more than 10,000 delegates from over 70 countries, secured investment commitments worth ₹10 lakh crore, demonstrating global confidence in India’s logistics and maritime capabilities. The event saw the signing of 360 Memorandums of Understanding (MoUs) across various domains, including port modernization, shipbuilding, logistics digitization, and green shipping solutions.
Among the major investments, JNPT secured ₹70,000 crore for expansion projects, while the Chennai-Kanyakumari industrial corridor attracted ₹40,000 crore in port-led development. Additionally, the Indian Register of Shipping (IRS) signed agreements with international shipbuilders, fostering technological exchange and innovation in ship design and maritime safety. GMIS 2023 also facilitated the launch of India’s first Hydrogen-Powered Port Initiative, aligning with the Maritime Amrit Kaal Vision 2047.
India’s ranking in the Liner Shipping Connectivity Index (LSCI) has improved from 44th in 2014 to 22nd in 2023, reflecting enhanced port efficiency and global trade connectivity. With global shipping giants such as Maersk and DP World expanding their Indian operations, the country is fast emerging as a preferred destination for maritime trade and investment. The summit’s impact extends beyond financial commitments—it serves as a platform for policy discourse, international collaborations, and strategic planning, ensuring that India’s maritime sector continues to thrive in the years to come.
India’s improved ranking in the World Bank’s Logistics Performance Index reflects the success of the Modi government’s strategic interventions in the logistics sector. By focusing on infrastructure expansion, technological integration, and policy reforms, India has positioned itself as a global logistics powerhouse. The continued execution of visionary initiatives like PM Gati Shakti, Bharatmala, Sagarmala, and Maritime Amrit Kaal Vision 2047 will further enhance India’s competitiveness, ensuring sustainable economic growth and global trade leadership.
