Infrastructure Bottlenecks in India’s Logistics Network

India’s logistics sector—valued at around $250 billion in 2024—carries nearly 13–14% of GDP in transport and warehousing costs, far above the global average of 8–9% (Invest India). Despite ambitious policies like PM Gati Shakti and the National Logistics Policy, persistent infrastructure gaps continue to stall efficiency, drive up costs, and erode competitiveness. In this article, we explore key bottlenecks across roads, rail, ports, warehousing, and digital infrastructure, and suggest how businesses and agents can navigate these challenges.

1. Road Network Deficiencies

Road transport moves over 60% of India’s cargo, yet:

• Non-national highways remain in poor condition: Only ~25% of rural roads are all-weather, leading to delays (MoRTH).

• Inadequate last-mile connectivity: Many industrial clusters lack proper link roads, forcing trucks onto longer detours.

• Toll plaza congestion: With over 650 toll plazas, wait times can add 2–3 hours per trip.

Solution pathways:

• Accelerated upgradation under Bharatmala Pariyojana, focusing on economic corridors and feeder routes.

• Use of toll-free windows and FASTag interoperability for faster plaza processing.

• Contracting experienced local logistics agents via platforms like India-Agent.com to map and pre-plan routes avoiding known chokepoints.

2. Railway Capacity Constraints

Rail freight accounts for about 30% of cargo movements, but suffers from:

• Inadequate electrification and diesel dependence on branch lines, causing mode shifts back to roads.

• Limited siding and transshipment points at industrial clusters.

• Under-utilized Dedicated Freight Corridors (DFCs) due to last-mile “first/last kilometer” gaps.

Remedies:

• Fast-tracking DFC commissioning and integrating feeder lines.

• Expanding private-sector participation in freight terminals under the 2022 National Rail Plan.

• Engaging specialized rail-freight agents to secure rakes and manage scheduling challenges.

3. Port and Coastal Shipping Chokes

India’s 12 major ports handle most seaborne trade, yet:

• Aging infrastructure and berth shortages lead to vessel waiting times of 1–3 days.

• Poor hinterland connectivity through congested rail/road arteries.

• Under-exploited coastal shipping capacity (~6% modal share) due to low-frequency services and lack of feeder networks (Sagarmala).

Optimizations:

• Implementing port modernizations and PPP run‐and‐maintain models.

• Incentivizing coastal shipping via tax breaks and direct agent-coordinated weekly liner services.

• Leveraging Sagarmala’s Coastal Economic Zones for port-adjacent warehousing to reduce dwell time.

4. Warehousing Shortages and Quality Gaps

India needs an estimated 500 million sq. ft. of additional Grade-A warehousing by 2030, yet:

• Land acquisition hurdles delay development.

• Cold storage is growing at only 8% CAGR—below food processing needs.

• Many facilities lack automation, real-time inventory tracking, and bonded storage capabilities.

Action points:

• Partner with real–estate developers who specialize in “built-to-suit” logistics parks.

• Promote refrigerated and climate-controlled facilities under PLI schemes for food and pharma.

• Use tech-savvy warehousing agents from India-Agent.com to negotiate contracts and ensure compliance with global standards.

5. Digital and Regulatory Frictions

Despite the Unified Logistics Interface Platform (ULIP) and e-way-bills, persistent hurdles include:

• Fragmented information across multiple portals (ICEGATE, NMCC, e-SANCHIT).

• Slow adoption of IoT and blockchain for real-time cargo visibility.

• Regulatory delays in approvals for drone delivery corridors and automated road trains.

Digital accelerators:

• Integrate third-party TMS/WMS tools that link multiple government APIs into one dashboard.

• Engage digital transformation consultants to pilot IoT-based track-and-trace on critical corridors.

• Lobby through trade bodies and agents for faster drone-corridor approvals, starting with green zones.

Conclusion

Infrastructure bottlenecks continue to stymie India’s logistics efficiency, but targeted policy interventions and strategic partnerships can help businesses navigate these challenges today. Whether it’s road-route planning, rail scheduling, port coordination, or automated warehousing, leveraging experienced local agents—vetted on India-Agent.com—combined with emerging digital tools offers a pragmatic path forward. As India scales toward a $5 trillion economy, addressing these logistics gaps will be critical to unlocking the full potential of domestic and export markets.

Relevant Links

• Sagarmala Programme – sagarmala.gov.in

• Invest India Logistics Reports – investindia.gov.in

• National Rail Plan – indianrailways.gov.in

• india-agent.com