Key Highlights
- Dramatic Cost Reduction: India’s logistics costs dropped from 13-14% of GDP to just 7.97% in 2025, totaling ₹24.01 lakh crore and surpassing government targets of reaching single digits
- Digital Revolution Success: ULIP facilitated over 160 crore digital transactions through 30+ integrated systems, while Logistics Data Bank tracked 75 million EXIM containers across 101 ICDs
- Infrastructure Development: 35 Multi-Modal Logistics Parks approved nationwide with 5 under development, expected operational by FY 2025-27 to boost multimodal transport efficiency
- Global Recognition: India rose to 38th position in World Bank’s Logistics Performance Index, with 27 states formulating logistics policies and 65,000+ professionals trained since 2023
- Sustainability Leadership: TEMT became India’s first ISO 14083-certified emissions measurement tool, integrated with ULIP for transparent carbon footprint tracking across freight operations
Introduction
As India commemorates the third anniversary of its transformative National Logistics Policy (NLP), launched by Prime Minister Narendra Modi on September 17, 2022, the nation celebrates remarkable achievements in creating a “technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted” logistics ecosystem. This landmark policy has catalyzed unprecedented reforms across India’s supply chain infrastructure, driving the vision of accelerated and inclusive economic growth. static.pib.gov
The NLP’s impact extends far beyond policy frameworks, delivering measurable results that position India as a global logistics powerhouse. Most significantly, India’s logistics costs have dramatically dropped from 13-14% of GDP to just 7.97% as of 2025, surpassing even government targets and establishing new benchmarks for efficiency. This achievement represents ₹24.01 lakh crore in total logistics expenditure, with the sector now employing over 22 million people and projected to create 1 crore additional jobs by 2027.
From Fragmented Systems to Integrated Excellence
Historical Challenges in India’s Logistics Landscape
India’s logistics sector, contributing 13-14% to GDP, faced significant structural challenges before the NLP’s introduction. High logistics costs of 13-14% compared to global benchmarks of 8-10% severely impacted India’s competitiveness in international markets. The sector suffered from fragmented supply chains, infrastructure bottlenecks, and regulatory complexities that created inefficiencies across the entire value chain.
Piecemeal policy approaches of the past failed to address systemic issues comprehensively. Modal imbalances heavily favored road transport (66% of cargo movement), followed by rail (31%), shipping (3%), and air (1%), creating unsustainable pressure on road infrastructure. Port processes, interstate checkpoints, and documentation requirements added layers of complexity that inflated costs and extended delivery timelines.
The NLP’s Strategic Foundation
The National Logistics Policy emerged as a unified, forward-looking framework aligned with the PM GatiShakti National Master Plan to address these challenges comprehensively. The policy focuses on strengthening soft infrastructure, advancing digitization, fostering human resource development, and enabling regulatory reforms to create world-class logistics capabilities.
Four key pillars form the NLP’s foundation: Digital Integration, Infrastructure Development, Services Improvement, and Human Resource Enhancement. This holistic approach ensures that technological advancement, physical infrastructure, service quality, and skill development progress simultaneously to create synergistic effects.
Core Components and Building Blocks
Unified Logistics Interface Platform (ULIP): Digital Transformation
The Unified Logistics Interface Platform (ULIP) represents the NLP’s most significant digital achievement, facilitating secure API integration across more than 30 digital systems. By August 2025, ULIP has enabled over 160 crore digital transactions, demonstrating the platform’s massive scale and adoption across India’s logistics ecosystem.
ULIP’s capabilities extend beyond simple data integration, offering real-time cargo tracking across road, rail, ocean, and air transport modes. The platform simplifies compliance with government logistics policies and regulations while promoting Ease of Doing Business (EODB). Processing an average of 1 crore API transactions weekly, ULIP has democratized access to logistics data, ensuring equal opportunities for businesses of all sizes.
Major corporations including Prism Johnson, Asian Paints, and Tata Steel leverage ULIP’s APIs to streamline transporter verification, automate processes, and strengthen supply chains. This widespread adoption across manufacturing sectors demonstrates the platform’s practical utility and business impact.
Comprehensive Logistics Action Plan (CLAP)
The Comprehensive Logistics Action Plan (CLAP) serves as the NLP’s implementation roadmap, defining specific actions and timelines to achieve policy objectives. CLAP sets ambitious targets for cost reduction, infrastructure building, multimodal transport enhancement, green logistics adoption, and skill development across the sector.
Infrastructure targets include developing 35 Multi-Modal Logistics Parks (MMLPs) at strategic locations to enhance multimodal transport efficiency. Five MMLPs at Jogighopa, Chennai, Bengaluru, Nagpur, and Indore are currently under development and expected to be operational by FY 2025-26 and FY 2026-27.
Ease of Logistics (ELOG) and Regulatory Reforms
Ease of Logistics (ELOG) initiatives focus on simplifying logistics operations, promoting transparency, and enhancing accessibility for businesses. These reforms aim to reduce bureaucratic bottlenecks and create a more business-friendly environment for logistics service providers.
System Improvement Group (SIG) regularly monitors and reviews all logistics-related projects to ensure effective implementation and continuous improvement. This systematic approach ensures that policy objectives translate into measurable outcomes on the ground.
Achievements and Current Developments
Digital Infrastructure Milestones
The Logistics Data Bank (LDB) has emerged as a comprehensive container logistics visualization system, tracking over 75 million EXIM containers across 101 Inland Container Depots (ICDs). LDB 2.0 introduces enhanced capabilities including real-time tracking of container movements and export container tracking on high seas along with multimodal shipment visibility.
LDB’s success is evidenced by over 45 lakh unique container searches per month, demonstrating its value to the trade community. This high usage underscores the system’s effectiveness and the trust it has built within the logistics sector.
Skills Development and Capacity Building
Human resource development has shown remarkable progress with over 65,000 professionals trained between 2023 and 2025. More than 100 universities now offer logistics-related courses, creating a robust pipeline of skilled professionals for the sector.
This educational expansion addresses the sector’s critical need for qualified personnel while supporting its projected job creation targets. The integration of logistics education into academic curricula ensures long-term sustainability of skill development efforts.
State-Level Implementation and LEADS Index
State participation has been exceptional with 27 States and Union Territories formulating State Logistics Policies (SLP) and 14 States preparing Logistics Action Plans (LAP) as of August 2025. This widespread adoption demonstrates the federal character of logistics reforms and state governments’ commitment to the NLP’s objectives.
The Logistics Ease Across Different States (LEADS) index has played a crucial role in supporting India’s rise to the 38th position in the World Bank’s Logistics Performance Index. LEADS 2025 introduces performance assessment of 5-7 key corridors and API-enabled evaluation of section-wise speeds on major road corridors.
Green Logistics and Sustainability
Environmental sustainability has gained prominence with the development of the Transportation Emissions Measurement Tool (TEMT) by IIM Bangalore in collaboration with Transport Corporation of India. TEMT achieved ISO 14083 certification, becoming India’s first certified emissions measurement tool for freight transportation.
TEMT’s integration with ULIP enables transparent emission reporting and visibility, empowering companies to make informed decisions about modal shifts to reduce their carbon footprint. This tool supports India’s broader climate goals while providing practical solutions for businesses seeking to improve their environmental performance.
Key Stakeholders and Implementation Network
Government Agencies and Central Ministries
The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry serves as the nodal agency implementing the NLP. Multiple central ministries including Transport, Railways, Civil Aviation, and Shipping collaborate to ensure coordinated policy execution across all transport modes.
State governments play crucial roles through mandated State Logistics Coordination Committees and regular LEADS index reviews. This federal structure ensures that national policies are adapted to local conditions and requirements.
Private Sector and Industry Participation
MSMEs, startups, large corporates, and logistics service providers actively participate in the NLP’s implementation through various initiatives and partnerships. Infrastructure development involves both public and private entities, with Multi-Modal Logistics Parks being developed under Public-Private Partnership (PPP) models.
Technology adoption has been particularly strong among private sector participants, with companies across industries leveraging ULIP’s capabilities to improve their operations. This widespread adoption validates the policy’s market relevance and practical utility.
End Users and Beneficiaries
Consumers, farmers, exporters, and both urban and rural communities benefit from improved logistics efficiency and reduced costs. Export competitiveness has improved significantly due to reduced logistics costs and improved port turnaround times.
Rural connectivity and last-mile delivery improvements have enhanced access to markets and services for remote communities. This inclusive approach ensures that logistics improvements benefit all segments of society.
Challenges and Areas for Improvement
Persistent Infrastructure Gaps
Despite significant progress, challenges remain in addressing infrastructure gaps and ensuring uniform development across all regions. Modernization of existing infrastructure and coordination between different transport modes require continued attention and investment.
Regulatory harmonization across states and departments remains an ongoing challenge requiring sustained effort. Standardization of processes and reduction of bureaucratic hurdles need continuous monitoring and improvement.
Skill Development and Digital Literacy
Sustained skill development and digital literacy in the logistics workforce require ongoing investment and attention. The sector’s rapid technological transformation demands continuous upskilling and reskilling programs.
Ensuring inclusive growth for rural areas, hinterlands, and MSMEs remains a priority to prevent the benefits from accruing only to large players. This requires targeted interventions and support mechanisms.
Cost Optimization and Efficiency
While significant progress has been made in reducing logistics costs, achieving the target of bringing costs below 10% of GDP by 2030 requires sustained effort. Further optimization of processes and technology adoption will be crucial for reaching this goal.
Ensuring global competitiveness while maintaining quality and reliability standards requires careful balancing of cost reduction with service improvement. This challenge is particularly important as India aims to become a major global manufacturing hub.
Way Forward and Strategic Recommendations
Deepening Digital Integration
Further digitization and integration of emerging technologies like Artificial Intelligence, Machine Learning, and Data Analytics can enhance logistics performance significantly. Expanding ULIP’s capabilities and increasing API integrations will create more comprehensive digital ecosystems.
Blockchain technology and IoT integration could further enhance transparency, traceability, and security in logistics operations. These technologies can address remaining challenges in documentation, verification, and real-time monitoring.
Infrastructure Development and Modernization
Accelerating the development of remaining Multi-Modal Logistics Parks and ensuring their timely operationalization will be crucial for achieving infrastructure targets. Public-private partnerships need strengthening to mobilize the required investments.
Integration of logistics infrastructure with urban planning and smart city initiatives can create synergies and improve overall efficiency. Regional connectivity improvements, particularly for northeastern and remote areas, require focused attention.
Sustainability and Green Logistics
Expanding the adoption of TEMT and other green logistics tools across more companies and sectors will support India’s climate commitments. Modal shift toward more environmentally friendly transport options needs policy support and incentive structures.
Integration of renewable energy and clean technologies in logistics operations can further reduce the sector’s environmental impact. Sustainable packaging and circular economy principles should be incorporated into logistics strategies.
International Competitiveness and Global Integration
Achieving the target of ranking among the world’s top 25 logistics performers by 2030 requires sustained effort across all policy dimensions. Benchmarking against global best practices and adopting international standards will be essential.
Strengthening international partnerships and participating in global logistics networks can enhance India’s position as a regional logistics hub. Trade facilitation improvements and customs modernization will support export competitiveness.
Conclusion
India’s National Logistics Policy has fundamentally transformed the nation’s supply chain ecosystem over its three-year journey, delivering results that exceed initial expectations and global benchmarks. The dramatic reduction in logistics costs from 13-14% to 7.97% of GDP represents not just statistical improvement but a real competitive advantage for Indian businesses in global markets.
The digital transformation achieved through ULIP and supporting platforms demonstrates India’s capability to leverage technology for large-scale systemic change. With 160 crore digital transactions and 75 million containers tracked, these systems have created unprecedented transparency and efficiency in Indian logistics.
Infrastructure development, skills enhancement, and sustainability initiatives provide a strong foundation for achieving the 2030 targets of top 25 global ranking and sub-10% logistics costs. The federal approach with 27 states actively participating ensures that reforms reach every corner of India.
However, the journey ahead requires sustained commitment from all stakeholders to address remaining challenges in infrastructure gaps, regulatory harmonization, and inclusive growth. International competitiveness demands continuous innovation and adaptation to global best practices.
The NLP’s success positions India as a model for other developing nations seeking to modernize their logistics sectors through integrated, technology-driven approaches. As India moves toward its Viksit Bharat 2047 vision, efficient logistics will remain the backbone supporting the nation’s economic aspirations.
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