• India’s logistics gaps, including port congestion, siloed networks, and low digital adoption, threaten its global competitiveness.
• Digitalisation and multimodal coordination are essential to cut costs and boost supply chain reliability.
• Transforming logistics into a strategic national advantage requires aligned policies and resilient systems.

India’s logistics system is confronting a paradox as the country is expanding its industrial base and attracting global interest, yet its supply chain competitiveness remains constrained by persistent friction points like port congestion, fragmented modal networks and inconsistent digital adoption.

For an economy seeking to anchor itself more firmly in global value chains, these operational inefficiencies are no longer marginal irritants but strategic liabilities. Trade now moves at the speed of coordination, not at the speed of infrastructure alone, and India must bridge this divide if it is to convert manufacturing capability into global competitiveness.

Industry leaders examining this structural challenge argued that India’s logistics trajectory will hinge on the country’s ability to build cohesive networks, integrate digital systems and reduce hidden costs embedded in manual processes and unpredictable flows. The central message was unequivocal that, unless India’s logistics architecture improves in coherence, transparency and multimodal agility, its export ambitions will continue to face avoidable headwinds.

Port congestion: A coordination problem with economic consequences

Port congestion remains one of the most visible manifestations of inefficiency. Rohan Dixit, Director, Business Development at Clearship Group, described congestion not as an isolated operational issue but as a reflection of systemic fragmentation. “Congestion is not just a capacity problem, it is a coordination problem,” he remarked.

Dixit noted that delays often arise from inconsistent documentation standards, manual handling, and poor alignment between port authorities, shipping lines and inland logistics partners. Even incremental improvements in berth management and yard planning, he argued, could deliver measurable reductions in waiting times and improve exporters’ ability to meet contractual deadlines.

With cargo volumes increasing year-on-year, he cautioned that without digitally enabled coordination, congestion will become a structural bottleneck rather than an episodic challenge.

Fragmented networks: When modes do not communicate

India’s transport system remains heavily siloed, limiting the country’s ability to offer predictable, multimodal flow paths. Arjun Mohindru, Executive Director of EMU Lines, described the problem succinctly as, “India’s logistics networks operate in silos. Road, rail, coastal shipping and air cargo often function independently, creating friction instead of synergy.”

This fragmentation results in inefficient handovers, redundant costs and inconsistent transit times, issues that disproportionately affect time-sensitive cargo. Mohindru emphasised the need for corridor-based planning, where infrastructure development, regulatory processes and digital platforms are aligned across modes. He also indicated that private sector investments in multimodal parks and inland distribution hubs will only reach full potential if coordination mechanisms between agencies are strengthened.

His comments reflect a broader industry sentiment: multimodal integration is becoming a competitive necessity rather than an aspirational ideal.

Reducing logistics costs through digital transparency

India’s logistics costs remain significantly above international benchmarks, a challenge that has direct implications for export competitiveness. Viraj Vohra, Director of Continental Carriers, attributed part of this cost burden to a lack of transparency. “The lack of transparency introduces cost volatility,” he said. “When processes are manual or inconsistent, costs climb quietly through delays, rework and administrative overheads.”

For Vohra, digital transparency enabled through electronic documentation, automated customs processes and integrated tracking platforms is the most effective lever for cost reduction. Such systems not only increase predictability but also help companies plan more accurately, avoid demurrage, reduce disputes and streamline reconciliations.

Vohra underscored that “in a global market increasingly shaped by compliance expectations and rapid fulfilment cycles, digitalisation is becoming inseparable from competitiveness.”

Toward integrated services

From a global carrier perspective, the need for integrated logistics offerings has become increasingly pronounced. Girija Shanker, Chief Product Officer Logistics and Services at Maersk (India/South Asia), articulated the shift in customer expectations: “Customers are not buying transport, they are buying certainty.”

Shankar noted that multinational supply chains now require seamless coordination across ocean, rail, road and air to navigate congestion, climate disruptions and rapid demand swings. Shanker argued that unified documentation standards, streamlined regulatory processes and predictable multimodal linkages are essential for India to position itself as a reliable global trading partner.

Shankar further added that “even small coordinated improvements can deliver sizeable reductions in landed cost critical for exporters operating on narrow margins.

Industrial priorities: Reliability as a strategic variable

Representing India’s industrial manufacturing sector, Venkatakrishnan Balakrishnan, General Manager – Logistics at Tata Chemicals, underscored that predictable logistics systems directly influence production planning, inventory cycles and service commitments. “Manufacturers need predictability in planning, not surprises,” he said.

Chemical supply chains, in particular, rely heavily on dependable inland transport, container availability and regulatory clarity. Disruptions, Balakrishnan noted, can lead to cascading impacts across safety protocols, quality assurance and customer fulfilment timelines.

He emphasised the importance of logistics corridors equipped with real-time monitoring, risk-management systems and the flexibility to switch modes when necessary. His remarks reflect a broader manufacturing trend where logistics resilience has become a core metric of operational risk.

A strategic imperative for national competitiveness

As industry leader, Chaitaly Mehta, Convenor of Woman’s Wing at Federation of Freight Forwarders’ Association in India (FFFAI) concluded that “logistics transformation is no longer simply an infrastructure objective but a national competitiveness strategy.” She observed that, India’s ability to integrate into global commerce will depend on its capacity to harmonise systems across agencies, accelerate digital adoption and foster collaboration across public and private actors.

It was evident that, addressing structural bottlenecks in India’s logistics ecosystem will require sustained policy alignment, investment and digital integration. Ports must operate as coordinated nodes; multimodal linkages must replace isolated networks; and transparency must become embedded into every transactional layer.

India stands at a logistical and economic crossroads. As global value chains diversify and regional hubs compete for trade flows, the countries that succeed will be those that convert logistics from a constraint into an advantage. India has the scale, the industrial base and the momentum; the question now is whether it can align its systems to unlock the efficiency needed for global competitiveness.

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