Role of Logistics in Make in India & Export Growth

Why Logistics Matters for Make in India

Logistics connects factories to ports, airports, warehouses, and global markets. For Make in India to succeed, products must move faster, cheaper, and more reliably than competing nations.

Key impacts include:

• Lower production-to-delivery time
• Reduced logistics cost as a percentage of GDP
• Improved product quality during transit
• Higher trust among global buyers

Countries with advanced logistics systems dominate global trade—and India is rapidly moving in that direction.

 

Logistics as a Catalyst for Export Growth

1. Reducing Logistics Costs for Indian Exporters

India’s logistics cost has traditionally been higher than global benchmarks. Efficient freight forwarding, multimodal transport, and optimized supply chains help exporters:

• Offer competitive pricing
• Protect margins
• Access new international markets

Lower logistics costs directly translate into higher export volumes.

 

2. Strengthening Port & Airport Connectivity

Modern ports, inland container depots (ICDs), and cargo terminals play a vital role in export efficiency.

Recent improvements include:

• Port modernization and digital clearance systems
• Faster turnaround times at major ports
• Improved air cargo infrastructure for high-value exports

This connectivity enables Indian manufacturers to meet tight global delivery schedules.

 

3. Enabling MSMEs to Go Global

Small and medium manufacturers are the backbone of Make in India.

Logistics providers support MSMEs by offering:

• Consolidated shipments (LCL exports)
• Door-to-door freight forwarding
• Customs clearance assistance
• Cost-effective warehousing

These services help MSMEs participate in global trade without heavy infrastructure investments.

 

Role of Technology in Export-Oriented Logistics

Digital transformation is reshaping Indian logistics.

Key technologies driving growth:

• AI-driven route optimization
• Real-time shipment tracking
• Paperless customs and documentation
• Predictive analytics for demand forecasting

Technology improves transparency, reduces delays, and increases trust with international buyers.

 

Cold Chain & Specialized Logistics for Export Sectors

Certain export sectors depend heavily on advanced logistics:

• Pharmaceuticals: Temperature-controlled transport and compliance
• Agriculture & seafood: Cold chain and rapid transit
• Electronics & engineering goods: Secure, damage-free handling

Reliable cold chain and specialized logistics help India export high-value and sensitive products to regulated global markets.

 

Multimodal Logistics & Infrastructure Development

Multimodal logistics parks, dedicated freight corridors, and improved road-rail-port connectivity are game changers.

Benefits include:

• Faster inland cargo movement
• Reduced congestion and fuel costs
• Lower carbon emissions
• Better export timelines

These developments align directly with Make in India and sustainability goals.

 

Policy Support & Government Initiatives

Government-backed initiatives strengthening logistics include:

• National Logistics Policy (NLP)
• PM Gati Shakti
• Digitization of customs and trade processes
• Incentives for warehousing and logistics parks

These policies aim to make Indian exports more efficient, predictable, and globally competitive.

 

Logistics as a Competitive Advantage for India

In global trade, buyers value:

• On-time delivery
• Predictable lead times
• End-to-end visibility

Efficient logistics transforms India from a low-cost manufacturing base into a reliable global supply chain partner.