Is connectivity key to logistics competitiveness?

India’s logistics network has expanded rapidly, but the next challenge is making roads, railways, airports, ports and warehouses work as one connected system. As cargo volumes grow, multimodal logistics efficiency will increasingly depend not just on individual infrastructure assets but on the connections between them.

 

India has invested in transport and logistics infrastructure; highways have expanded, DFCs are operational, airports have gained capacity, and logistics terminals are being developed. The next challenge is in making these assets work together seamlessly.

 

 A shipment can move on a highway or DFC and lose time when it changes modes. Waiting for a vehicle, terminal space, documentation, or cargo handling can delay a journey.

 

 The Department for Promotion of Industry and Internal Trade and National Council of Applied Economic Research estimate logistics costs at 7.97 per cent of GDP in 2023–24, equivalent to `24.01 lakh crore. Road transport accounted for 41.7 per cent, while warehousing accounted for 24.8 per cent. Rail accounted for 6.7 per cent, waterways 7.6 per cent, and air transport 3.1 per cent. The numbers underline why improving transport will not be enough. The efficiency of the cargo journey depends on how it moves between various transport modes.

 From connectivity to continuity

 Air cargo illustrates the challenge. Air ports handled 3.72 MMT in FY2025, compared with 2.53 MMT in FY2015 — an increase of 47 per cent. Air cargo provides speed, but that advantage depends on what happens before and after. Cargo must reach the airport, pass through the terminal, and continue to its destination. Delays on the road or at a terminal can reduce the benefit of air.

 

Ketan Kulkarni, Managing Director and CEO, Allcargo Logistics, said the focus is shifting from projects towards a more connected landscape.

 

“India’s logistics sector is moving from individual infrastructure upgrades towards a more connected, multimodal ecosystem. The next phase of efficiency will depend on how seamlessly these modes connect with one another,” he added.

 

For logistics firms, this means designing networks around needs. Allcargo Logistics combined Air Express with its network, while its extended reach covers 100 per cent of India’s PIN codes

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