The past few years, sustained infrastructure spending, the rollout of PM Gati Shakti, and the National Logistics Policy have started to bend the cost curve and improve the reliability of logistics. Yet, if India truly wants to become a global supply chain powerhouse by 2030, Budget 2026 must move from incremental reforms to bold, transformative bets. Here are the five big moves that can fundamentally reshape India’s logistics story.

1. Make sub‑10% logistics cost a time-bound national target

India has made progress in bringing logistics costs closer to global benchmarks, but they still hover above the 8-9% of GDP range that leading manufacturing and export economies enjoy. The first big move should be to declare a time-bound national mission to bring logistics costs decisively below 10% by 2028, with clear milestones for each year and explicit accountability across ministries and states.

This mission cannot be a mere statement of intent. It should be backed by a dashboard that tracks corridor-level transit times, port dwell times, last-mile failure rates, and multimodal share, and links performance incentives for states and agencies to measurable improvements. For businesses, especially MSMEs, a two to three percentage point reduction in logistics cost directly improves margins and frees capital for growth and innovation.

2. Accelerate multimodal infra from projects to platforms

Over the last few Budgets, India has announced multimodal logistics parks, dedicated freight corridors, and a strong pipeline of roads, ports, and airports. The second bold move is to shift the focus from building isolated assets to creating truly integrated logistics platforms that make mode switching seamless for shippers.

This means fast-tracking the completion of freight corridors and multimodal parks, but equally, creating unified digital platforms that integrate schedules, pricing, documentation, and capacity visibility across road, rail, air, and coastal shipping. When an SME or D2C brand plans a shipment, they should be able to choose optimal multimodal routes with a few clicks, not navigate fragmented systems. The real transformation will come when physical and digital infrastructure evolve together.

3. Build a national digital logistics grid powered by AI

The third big move is to treat data as critical infrastructure for logistics. India needs a National Digital Logistics Grid that unifies shipment data, geospatial information, customs and compliance layers, and real-time carrier performance into a secure, interoperable backbone. Private-sector platforms and startups can then innovate on top of this grid to build AI-driven solutions.

AI can already predict delays, optimise routes, improve allocation across multiple carriers, and boost first-attempt delivery success. At scale, these capabilities can shave hours off delivery times, reduce empty miles, and cut costs for millions of shipments a day. Budget 2026 can accelerate this vision through targeted incentives for AI adoption by logistics providers and MSME exporters, sandboxes for data sharing with clear privacy safeguards, and support for standardised APIs across the ecosystem.

4. Make green logistics the default, not the exception

As India’s e-commerce and consumption story grows, so will its logistics carbon footprint. Budget 2026 must send a clear signal that the future is green logistics. This requires moving beyond pilot projects and scattered subsidies to a coherent green logistics framework that combines incentives, standards, and clear long-term targets.

Key elements should include viability gap funding and credit support for electric and alternative-fuel fleets, green warehousing norms tied to energy efficiency and renewables, and preferential treatment for low-emission logistics providers in government procurement. Carbon accounting for logistics, once mainstreamed, will push brands to actively choose cleaner options. A decisive push in 2026 can position India not just as a cost-competitive hub, but as a sustainable one.

5. Put MSMEs and D2C brands at the heart of policy design

The fifth big move is to design logistics policy from the lens of India’s MSMEs, exporters, and digital-first brands, not just large enterprises. For a small seller, logistics is often the single biggest barrier to scaling beyond their city or state, let alone going global. Budget 2026 can change this by institutionalising a “Logistics for MSMEs” framework that simplifies access, finance, and compliance.

This could include credit-linked incentives for first-time exporters, subsidised access to tech-enabled logistics platforms, streamlined documentation for cross-border shipments, and rationalisation of taxes and surcharges that disproportionately hurt small shippers. When a craftsperson in a Tier 3 town can ship as reliably as a large brand in a metro, India’s logistics story will have truly transformed.

India’s logistics sector has already moved from the sidelines to the centre of economic strategy. Budget 2026 is the moment to double down with bold, coordinated moves that combine infrastructure, technology, sustainability, and inclusion. If policymakers can align these five levers, logistics will not just support India’s growth story, it will become one of its strongest competitive advantages.

(The author is co-founder, iThink Logistics. Views are personal.)