New Delhi(ABC Live): Logistics is the silent backbone of India’s economy. From moving coal to power plants, cement to construction sites, medicines to hospitals, and exports to global markets, every sector depends on an efficient logistics system. Yet, India has long struggled with high logistics costs, fragmented infrastructure, and weak multimodal integration.
To address these inefficiencies, the National Logistics Policy (NLP) was launched in September 2022 with a bold vision: cut costs to global benchmarks, build seamless multimodal connectivity under PM GatiShakti, and place India among the top 25 countries in the World Bank Logistics Performance Index (LPI) by 2030.
Three years later, official celebrations highlight digital platforms and policy reforms. But the key question remains: Have these translated into lower costs and better competitiveness?
ABC Live conducted a performance audit of the National Logistics Policy, benchmarking India’s progress against global peers such as China, Singapore, the US, and Vietnam. The findings are mixed: while digital reforms are strong, infrastructure, cost reduction, and sustainability lag behind.
On September 17, 2022, Prime Minister Narendra Modi launched the NLP as a transformative framework. The government is marking its third anniversary with high-profile events.
ABC Live believes this is the right moment to move beyond official announcements and present a data-driven, global, and independent audit. Logistics costs currently consume 13-14% of India’s GDP, nearly double the global average, and directly weaken export competitiveness.
Three years later, progress is visible in digital integration but weak in cost reduction, infrastructure rollout, and inclusivity.
➡️ Insight: India is more expensive and less efficient than its peers. China and Vietnam, its direct competitors, are improving faster.
➡️ Verdict: Without accelerated reforms, China’s logistics advantage will continue to erode India’s competitiveness.
Alt-text: Performance audit chart comparing logistics costs: India 13.5% of GDP, China 8%.
Caption: India’s logistics costs remain nearly 75% higher than China’s in 2025.
Alt-text: Performance audit chart comparing rail freight share: India 27%, China 47%.
Caption: China’s reliance on rail keeps costs low; India remains road-dependent.
At ABC Live, we cut through government press releases to provide independent, evidence-backed journalism. The NLP is bold in vision but weak in delivery.
This performance audit, built on data analysis, global benchmarking, and inclusion metrics, highlights a clear message: policy intent is not enough — execution will decide whether India can compete with China, Vietnam, and advanced economies by 2030.
✅ Final Verdict:
The National Logistics Policy has created momentum through digital reforms, but its execution gap remains stark. Without rapid progress in cost reduction, multimodal infrastructure, and green adoption, the 2030 targets will remain out of reach — while global competitors pull further ahead.
