By Puneet Agarwal, President, CJ Darcl Logistics
India’s logistics industry serves as a crucial pillar supporting the country’s economy, with its extensive network catering to multiple sectors, from agriculture to manufacturing. The industry has evolved significantly, developing a robust logistical landscape that not only ensures a seamless flow of goods but also offers solutions such as digital inventory management, warehousing, last-mile distribution, customs clearance, and end-to-end supply chain management. With the rapid growth of this sector—particularly in e-commerce—the logistics industry continues to innovate, becoming increasingly technology-driven, environmentally conscious, and committed to ensuring efficient goods movement.
Government initiatives have played a pivotal role in this transformation, with infrastructure being the backbone of timely deliveries and cost reduction. Through various initiatives, policies, and plans such as the launch of dedicated freight corridors, the development of new highways, the modernization of existing ports, the PM Gati Shakti National Master Plan, the National Rail Plan, the National Logistics Policy, Maritime Vision 2030, and the Unified Logistics Interface Platform, the government has emphasized revolutionizing India’s logistics industry. These efforts aim to reduce logistics costs and enhance operational efficiency. However, to fully capitalize on these advancements, logistics companies must align with the latest trends shaping the sector.
Trends in the Indian Logistics Ecosystem
Artificial Intelligence (AI)
The integration of AI in logistics is revolutionizing the industry in ways previously unimaginable. AI helps mitigate potential issues before they arise by predicting demand, identifying possible disruptions such as adverse weather or traffic congestion, and analyzing driver behavior through AI-enabled dash cameras. AI also aids in predictive vehicle maintenance, allowing companies to address issues in advance and plan journeys efficiently. The incorporation of AI into logistics is nothing short of transformative. At CJ Darcl, we leverage AI in various processes, including route optimization, predictive vehicle maintenance, and driver behavior monitoring, to make our operations smarter.
Technology Integration
The adoption of technology in logistics has led to significant advancements that benefit both companies and customers. Enhanced transparency through digital tracking and tracing enables manufacturers and sellers to stay informed about the status of their consignments. Additionally, automation in inventory management has expanded the scope for end-to-end logistics support, covering everything from the point of origin to last-mile delivery.
Third-Party Logistics (3PL)
As India positions itself as a global manufacturing hub, the country’s rising manufacturing capacity is fueling the growth of third-party logistics (3PL). Additionally, increasing competition among e-commerce platforms to provide deliveries within two days or less is prompting manufacturers to seek support from 3PL providers to meet customer expectations for ultra-fast deliveries. While speed remains a priority, customers are also increasingly aware of sustainability, prompting demand for 3PL service providers that offer real-time tracking along with eco-friendly transportation, storage, and packaging solutions.
Exploring Alternatives to Road Transportation
The government has placed significant emphasis on reducing on-road emissions by investing in alternative modes of transport. Major capital allocations have been made to modernize shipping and railway infrastructure, with an ambitious goal of increasing India’s railway freight share by 2030 through initiatives such as the National Rail Plan. Additionally, dedicated freight corridors are being developed to facilitate faster goods movement. The Ministry of Ports, Shipping, and Waterways has also introduced initiatives like Sagarmala and Maritime India Vision 2030, which focus on upgrading coastal infrastructure to enhance annual cargo-handling capacity and promote inland waterway usage.
Electric Vehicles (EVs) & LNG Trucks
According to NITI Aayog, around 70% of India’s goods are transported via trucks, and this demand is expected to quadruple by 2050. To support this growth while reducing environmental impact, the industry must transition from petrol- and diesel-powered vehicles to electric vehicles (EVs) and liquefied natural gas (LNG) trucks. Favorable government policies promoting LNG truck integration and expanding EV charging infrastructure will play a critical role in widespread adoption. As an industry pioneer, CJ Darcl is already piloting EVs and exploring LNG trucks to reduce carbon emissions and set new sustainability benchmarks.
Hydrogen-Fuel Trains
To lessen reliance on fossil fuels, India recently unveiled its first hydrogen-fuel train. These trains operate on electricity generated by combining hydrogen and oxygen, producing only water vapor as an emission. This innovation marks a significant step toward reducing the logistics sector’s carbon footprint.
Multimodal Transportation & Logistics Parks
The government has undertaken various projects to develop multimodal logistics parks to facilitate seamless multimodal transportation. Initiatives such as Bharatmala and Sagarmala aim to improve connectivity across different transport modes, enhancing India’s multimodal logistics infrastructure. With a vast network spanning the country, CJ Darcl encourages its clients to adopt multimodal solutions to reduce their carbon footprint and emerge as sustainability leaders in their respective industries.
As India moves toward becoming a global manufacturing and trade hub, logistics companies must stay ahead by embracing emerging trends and adopting innovative solutions. By leveraging technology, sustainable practices, and efficient infrastructure, the Indian logistics industry will continue to be a key driver of economic growth, ensuring seamless and cost-effective goods movement across the country and beyond.