India’s logistics cost has come down to 7.97% of GDP on the back of multiple infrastructure initiatives taken by the centre in the last couple of years including capital expenditure push, freight corridor initiatives and Gati Shakti, said a government statement today. The is almost half of the logistics cost of around 15% over a decade ago.  

“India’s logistics is entering a new phase and converting itself into a faster, smarter, and globally competitive sector. Backed by targeted policy reforms, institutional realignment, and technology-driven solutions, the government is transforming logistics into a key driver of India’s economic growth and global trade positioning,” the statement said.

Wagon turnaround time has significantly improved due to the dedicated freight corridors. “India is transforming its logistics network along the Gangetic Plain through an integrated multimodal approach that combines road, rail, and inland waterways, making transport faster, cheaper, and greener,” the statement said.  

“The Eastern Dedicated Freight Corridor (EDFC), a high-speed rail freight line, has reduced wagon turnaround times from 15–16 days to 2–3 days and cut transit times from over 60 hours to around 35–38 hours. Freight operations are now managed via a central control centre in Prayagraj, easing congestion on existing rail networks,” it said.  

“The revival of the Ganga Waterway, linked to the EDFC at Varanasi, allows manufacturers to move cargo efficiently to eastern ports like Haldia. Rapid development of warehousing and logistics facilities near the corridor has boosted employment, improved inventory management, and enabled timely production and export,” the government said.  

“These projects involve significant investments from the World Bank, including $1.96 billion for the Eastern Dedicated Freight Corridor and Rail Logistics initiatives and $375 million for the Ganga Waterway development. Together, these efforts are creating an efficient, integrated logistics system that reduces costs, lowers carbon emissions, and strengthens India’s connectivity to domestic and international markets,” the statement added.

The government pointed out that the inland waterways transported a record 145.84 million tonnes of cargo last year, while rail congestion is being addressed through dedicated freight corridors. “In industrial zones, plug-and-play parks under NICDC (National Industrial Corridor Development Corporation) offer ready infrastructure for investors. On the ground, reforms such as GST and the e-Way Bill have removed long-standing frictions in interstate transport. These interventions are driving a clear objective: reducing logistics costs, improving efficiency, and strengthening India’s position in global supply chains,” it said.