The scope of logistics parks in India is quite promising. They are seen as a backbone for economic growth, facilitating trade, enhancing farmer income, driving the ‘Make in India’ initiative, and reducing economic disparity across states1. Despite high logistics costs in India, at 13-14% of GDP, compared to other major economies like the USA (9-10%), Europe (10%), and Japan (11%), there is significant potential for improvement
Logistics parks, particularly Multi Modal Logistics Parks (MMLPs), are being developed to ensure a seamless transfer of goods across modes, providing best-in-class handling infrastructure and a range of logistics services including warehousing, packaging, cargo aggregation, and distribution1. These parks are equipped to handle various logistics tasks at a fraction of the current costs and are expected to reduce the overall freight transportation cost in India.
The government’s policy initiative aims to develop MMLPs in a hub-and-spoke model to improve the country’s freight logistics sector by lowering overall freight costs and time, cutting warehousing costs, reducing vehicular pollution and congestion, and improving the tracking and traceability of consignments through infrastructural, procedural, and information technology interventions.
In summary, the development of logistics parks in India is a strategic move to enhance the efficiency and competitiveness of the logistics sector, which is crucial for the country’s economic development.
