Multimodal Logistics in India: Driving Cost Efficiency & Trade Competitiveness
India’s logistics industry is entering a new era with the rise of multimodal logistics in India, where road, rail, air, and waterways integrate seamlessly under a single framework. This approach is transforming supply chains by lowering costs, cutting transit times, and improving reliability. Currently, logistics costs in India stand at 13–14% of GDP, higher than the global average of 8–9%. By shifting freight to more efficient modes such as rail and inland waterways, multimodal solutions can bring these costs down while supporting India’s trade competitiveness. Government initiatives like PM Gati Shakti and the National Logistics Policy (NLP) are accelerating this transformation through dedicated freight corridors, multimodal logistics parks (MMLPs), and smart port modernization. Inland waterways on the Brahmaputra and Ganga, along with coastal shipping, are further expanding low-cost, eco-friendly freight options. While challenges like last-mile connectivity, digital integration, and high capital investment remain, the future is promising. As India pushes toward becoming a $5 trillion economy, multimodal logistics will be the backbone of resilient and efficient supply chains, enabling businesses to deliver faster, scale globally, and strengthen India’s position as a manufacturing and export powerhouse.
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