New Delhi: Investments of nearly US$360 billion in infrastructure development over the past decade have generated estimated annual savings of between US$123 billion and US$133 billion for the Indian economy, according to a joint report released by the Confederation of Indian Industry (CII) and Knight Frank India in May.

The report highlights how sustained investments in transport, logistics and connectivity infrastructure have significantly improved supply-chain efficiency while reducing the cost of moving goods across the country.

One of the most notable outcomes has been a substantial decline in logistics costs. According to the report, logistics expenditure has fallen to approximately 10-10.7 per cent of GDP in FY2026, compared with 13-14 per cent a decade ago.

The improvement has also been reflected in India’s standing on the World Bank’s Logistics Performance Index, where the country climbed from 54th position in 2014 to 38th in 2023. The report attributes the rise to better connectivity, improved trade facilitation and stronger supply-chain performance.

Despite these gains, researchers noted that India’s logistics ecosystem remains some distance from achieving optimal efficiency. A key recommendation is the accelerated development of Multimodal Logistics Parks (MMLPs), which are viewed as critical to the country’s long-term freight and transportation strategy.

According to the report, India will require 216 MMLPs, each with an average capacity of 16-17 million metric tonnes annually, if it is to achieve its freight modal shift targets by 2047.

The study points out that excessive dependence on road transport continues to constrain efficiency and increase costs. Delays in the implementation of integrated logistics parks, coupled with inadequate first-mile and last-mile connectivity, have limited the movement of freight towards railways and other more efficient transport modes.

Mr Ashwani Gupta, Chairman of the CII National Committee on Ports and Shipping and Whole Time Director and CEO of Adani Ports and SEZ, said the challenge facing India was no longer primarily one of infrastructure shortage. “The core challenge is no longer an infrastructure deficit, but a lack of connective nodes,” Mr Gupta said.

He noted that MMLP-grade interchange facilities could deliver a substantial 43 per cent cost advantage over road freight movement along Dedicated Freight Corridor routes by consolidating fragmented cargo volumes and enabling greater modal integration.

Mr Gupta emphasised that achieving the National Rail Plan’s target of raising rail’s freight modal share to 45 per cent by 2047 would require aggressive expansion of the country’s intermodal logistics network.

The report also draws lessons from countries such as Germany, the Netherlands and Singapore, where integrated logistics parks have played a major role in improving supply-chain integration, operational efficiency and modal balance.

To accelerate progress, the study recommends faster implementation of logistics park projects, stronger private-sector participation, the creation of anchor demand through industrial clustering and freight aggregation, and urgent improvements in first-mile and last-mile connectivity infrastructure.

The findings underscore the transformative impact that infrastructure investments have already had on the Indian economy while highlighting the next generation of reforms required to support the country’s long-term growth ambitions.