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Africa
India’s logistics sector is undergoing a rapid transformation, and at the heart of this change is multimodal logistics - an approach that integrates road, rail, air, inland waterways, and coastal shipping to enable seamless cargo movement. With logistics costs in India traditionally higher than the global average, multimodal solutions are becoming essential to improving efficiency, cutting costs, and driving competitiveness in global trade.
What is Multimodal Logistics?
Multimodal logistics refers to the movement of goods using two or more modes of transport under a single contract. Instead of relying on road freight alone, cargo can be shipped by rail, waterways, and air in a coordinated manner, reducing transit time and improving reliability.
For example, a container may move from an industrial hub in central India to a port via rail, then be shipped by sea to international markets - all handled seamlessly through integrated logistics systems.
Why Multimodal Logistics Matters for India
1. Reducing Logistics Costs
India’s logistics costs currently account for nearly 13–14% of GDP, compared to the global average of 8–9%. By shifting cargo to more efficient modes like rail and waterways, multimodal logistics can significantly bring these costs down.
2. Faster and Reliable Cargo Movement
With road transport facing congestion and delays, integrating rail and waterways offers faster movement for bulk goods and reduces bottlenecks at ports and highways.
3. Supporting PM Gati Shakti & National Logistics Policy
Government initiatives like PM Gati Shakti and the National Logistics Policy (NLP) are pushing for integrated infrastructure - developing Multi-Modal Logistics Parks (MMLPs), dedicated freight corridors, and smart port connectivity to streamline supply chains.
4. Boosting International Trade Competitiveness
Seamless connectivity between production hubs, ports, and consumption centers enhances India’s position as a manufacturing and export powerhouse under initiatives like Make in India and PLI schemes.
Key Developments Driving Multimodal Growth
Challenges to Overcome
While multimodal logistics is promising, some challenges remain:
The Road Ahead
As India aims to become a $5 trillion economy, multimodal logistics will be the backbone of efficient supply chains. By expanding rail freight, inland waterways, coastal shipping, and MMLPs, the country is on track to cut logistics costs to 8% of GDP in the coming years.
For businesses, adopting multimodal solutions is no longer optional - it is the key to faster deliveries, global competitiveness, and resilient supply chains.
