Amid supply disruptions, Govt emphasis on improving logistics ecosystem
With the West Asia conflict disrupting the global supply chain, the Government has given maximum emphasis on improving the logistics ecosystem of the country and its cost, which is estimated to be 7.97 per cent of GDP or approximately INR 24.01 lakh crore.
Officials said India’s logistics ecosystem has entered a phase of structural transformation, driven by coordinated policy reforms, institutional realignment, digital platforms and large-scale infrastructure planning.
These efforts aim to address long-standing challenges such as fragmented planning, model inefficiencies, limited visibility across supply chains and high logistics costs.According to an official study, India’s logistics cost is estimated at 7.97 per cent of the GDP, which is about INR 24.01 lakh crore in absolute terms.
India’s logistics reforms are anchored in a set of mutually reinforcing policies, digital platforms and infrastructure initiatives aimed at improving efficiency, reducing costs and strengthening supply chain integration, the officials said.At an event here on March 12, Prime Minister Narendra Modi had said that the current conflict, which is going on nearby, had triggered a worldwide energy crisis, serving as a critical test of national character that required dealing with circumstances through peace, patience and increased public awareness.
The PM emphasised that the Government was working relentlessly to address and overcome the various disruptions that had emerged within international supply chains.“Continuous efforts are also underway to determine how we can overcome the disruptions that have occurred in the supply chain,” Modi had said.According to the officials, India’s path to economic growth increasingly relies on efficient logistics, which are key to enhancing competitiveness and global connectivity.
The National Logistics Policy and PM GatiShakti have injected a new momentum into this transformation, laying the foundation of a more integrated and data-driven logistics ecosystem, the officials said.The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme launched by the Government focuses on developing integrated logistics planning at the state and city levels.
As part of SMILE, integrated logistics planning has been undertaken in eight pilot cities across eight states to assess existing logistics infrastructure and improve efficiency and reduce costs.
Under SMILE, each of the eight pilot cities is developing an integrated logistics plan covering urban and peri-urban areas.These plans map and optimise freight-intensive activities such as retail distribution, e-commerce delivery routes, warehousing clusters, truck terminals and last-mile corridors.
“The focus is on data-driven planning, institutional coordination, congestion and noise reduction, adoption of low and zero-emission vehicles, process automation and better alignment between freight and passenger movement,” the officials said.
