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Supply Chain · Warehousing & Transport

India Targets 9% Logistics Cost Amid BRICS Supply Chain Shift

According to indiashippingnews.com, India aims to reduce logistics costs from 14–16% to 9% through ₹1 lakh crore in multimodal infrastructure investment — generating ₹321 in GDP per ₹100 spent. At the 2nd Logistics Shakti Summit 2026 in New Delhi, held under India’s BRICS Presidency, officials and industry leaders advanced strategies for integrated trade corridors, cargo-first aviation, workforce skilling, and AI-driven end-to-end supply chain integration. Key speakers included Nitin Gadkari and Ramdas Athawale, who emphasized speed, sustainability, and inclusive growth.

Original source: indiashippingnews.com

India Targets 9% Logistics Cost Amid BRICS Supply Chain Shift

According to indiashippingnews.com, India is advancing a BRICS-aligned supply chain strategy as part of its broader logistics transformation, formalized during the 2nd Logistics Shakti Summit & Awards 2026 in New Delhi — held under India’s BRICS Presidency.

Policy-Driven Logistics Overhaul

The summit convened senior policymakers, global representatives, and industry leaders to address systemic challenges amid geopolitical disruptions and evolving trade architecture. Central to the agenda was India’s ‘Logistics 3.0’ vision — a shift from fragmented systems to a digitally connected, infrastructure-led ecosystem aligned with the national Vision 2047.

Core Targets and Investments

Nitin Gadkari, Hon’ble Union Minister for Road Transport and Highways, Government of India, stated:

“We have set a clear target to bring down India’s logistics cost from 14–16% to a single-digit 9%. With an investment of ₹1 lakh crore in multi-modal logistics infrastructure, where every ₹100 invested can generate ₹321 in GDP impact, we are transforming connectivity across the country. Projects that once took 9 hours are now completed in just 2.25 hours, reflecting our commitment to speed and efficiency. Guided by the 4 pillars of speed, scale, sustainability, and smart technology, we are also accelerating the shift towards EVs, biofuels, and hydrogen to power the future of logistics. Our focus is to reduce costs, improve ease of movement, boost exports, generate employment, and position India as a global logistics hub, accelerating our journey towards a $5 trillion economy.”

Strategic Focus Areas

  • Building integrated trade corridors and strengthening supply chain resilience
  • Enabling digital and paperless trade
  • Advancing multimodal connectivity
  • Accelerating sustainable logistics practices, including net-zero transitions via renewable energy and ESG frameworks

A dedicated session on cargo-first aviation highlighted India’s push to develop purpose-built air freight capacity — moving beyond reliance on passenger aircraft belly space. Another session underscored India’s emergence as a global supply chain workforce hub, emphasizing skilling, certification, and mobility across logistics, warehousing, ports, and digital supply chains.

Technology and Innovation Momentum

Discussions emphasized the scaling of AI, automation, and digital platforms — with participants noting that adoption is shifting beyond pilots to large-scale implementation. Sarvam Shukla, National Head Industry, Apollo Innovatione, observed:

“Technology adoption in logistics is moving beyond pilots to large-scale implementation. Whether it is AI-driven demand forecasting, automation in warehousing, or digital platforms for visibility, the challenge now is integration across the value chain to create end-to-end efficiency rather than isolated improvements.”

The summit featured the launch of a drone-based logistics prototype and included a fireside conversation on the “Logistics Unicorn Playbook,” exploring scalable enterprise development. Roundtables covered express logistics, startup innovation pathways, and sectoral readiness.

Workforce and Inclusion Priorities

Ramdas Athawale, Minister of State for Social Justice & Empowerment, Government of India, stressed inclusive growth:

“The logistics sector is one of the largest employment generators, particularly for semi-skilled and skilled workers. Strengthening this sector through formalisation, skilling, and better working conditions will not only improve efficiency but also contribute to inclusive growth and social equity.”

Amit Shankhdhar, Co-founder, Logistics Shakti Enterprise, added:

“The sector is at an inflection point where policy intent, infrastructure investments, and private sector innovation are converging. The focus now needs to be on execution, building scalable models, improving service reliability, and ensuring that India’s logistics ecosystem is aligned with global standards in terms of cost, speed, and transparency.”

The event concluded with the Logistics Shakti Awards 2026, recognizing excellence across infrastructure, sustainability, technology adoption, and frontline workforce contributions — reinforcing the centrality of human capital in supply chain continuity.

Source: indiashippingnews.com

Compiled from international media by the SCI.AI editorial team.

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