Business
India’s Supply Chain Competitiveness Strengthens Through Infrastructure Growth
Massive infrastructure investments over the past decade have helped India significantly reduce logistics costs and improve its global logistics ranking, according to a new CII–Knight Frank report, which also calls for accelerated development of Multimodal Logistics Parks.
India’s sustained investment in infrastructure development over the past decade has substantially improved logistics efficiency and reduced transportation costs across the economy, according to a report released by Confederation of Indian Industry and Knight Frank India.
The report, titled “Fast-Tracking MMLPs to Enable Modal Shift: India’s Multimodal Logistics Transformation: A Strategic Outlook”, stated that cumulative infrastructure investments of nearly USD 360 billion have helped bring logistics costs down to approximately 10-10.7 per cent of GDP in FY26, compared with 13-14 per cent a decade ago.
Key Highlights from the Report
| Indicator | 2014 | FY26/Latest |
|---|---|---|
| Logistics Cost as % of GDP | 13-14% | 10-10.7% |
| India’s Logistics Performance Index Rank | 54 | 38 (2023) |
| Infrastructure Investment | – | USD 360 Billion |
The report highlighted that lower logistics costs improve the competitiveness of Indian manufacturing, exports, and supply chains by reducing transportation and warehousing expenses.
India’s standing in the World Bank’s Logistics Performance Index also improved significantly, rising from 54th position in 2014 to 38th position in 2023, reflecting improvements in infrastructure, customs efficiency, tracking systems, and logistics services.
However, the report noted that India will require a larger network of Multimodal Logistics Parks (MMLPs) to achieve the next phase of logistics transformation.
MMLPs are designed to integrate multiple modes of transport—including road, rail, waterways, and air cargo—within a single logistics ecosystem. Such facilities help reduce transit times, lower freight costs, improve cargo handling efficiency, and facilitate seamless movement of goods.
Industry experts believe that expanding multimodal infrastructure will be critical to supporting India’s ambitions of becoming a global manufacturing and export hub while strengthening domestic supply chains.
The report underscores the importance of continued public and private sector investment in logistics infrastructure as India seeks to further enhance economic competitiveness and ease of doing business.
