India requires 216 multimodal logistics parks by 2047 to ensure the smooth movement of freight across the country [1].
This infrastructure expansion is critical for managing a projected surge in freight demand. By shifting cargo from road to rail, the country aims to improve overall logistics efficiency and reduce the economic burden of transporting goods.
The findings come from a report by the Confederation of Indian Industry (CII) in partnership with Knight Frank India [1]. While the report suggests a need for 215 to 216 parks [1, 5], the government currently plans to build only nine [2]. This gap highlights a significant difference between industry projections and current state planning.
To achieve these goals, the CII-Knight Frank report references a total infrastructure investment of USD 360 billion [3]. These investments are designed to streamline the supply chain, and lower the cost of doing business within the region.
Lowering these costs is a primary objective for the Indian economy. The report said that logistics costs could drop to between 10% and 10.7% of GDP by FY 2026 following these strategic investments [4]. This reduction would make Indian exports more competitive on the global market, a key goal for the nation's long-term economic strategy.
The push for multimodal parks focuses on integrating different modes of transport, such as rail, road, and sea. This integration is intended to eliminate bottlenecks that currently slow the movement of goods between production centers and ports.
“India requires 216 multimodal logistics parks by 2047 to ensure the smooth movement of freight”
The disparity between the CII's recommendation of over 200 parks and the government's current plan for nine suggests a potential bottleneck in India's industrial growth. If the government does not scale its infrastructure pipeline to match industry projections, the country may struggle to transition freight from roads to rail, potentially keeping logistics costs higher than the targeted 10% of GDP.
