Tech on Track: Powering the Growth of India’s Logistics Revolution

India’s logistics sector is poised to become a cornerstone of its economic aspirations, projected to reach ₹50 lakh crore by 2030. In an exclusive conversation with Marksmen Daily, Senior Journalist Neeraj Tiwari spoke to Santosh Pandey, a seasoned logistics expert currently working with Gulf Oil Lubricants, to understand the road ahead. From tech-enabled transformations to critical policy interventions, Pandey shares his insights on what it takes to make India a global logistics powerhouse.

Q1: India’s logistics sector is expected to reach ₹50 lakh crore by 2030. What structural reforms do you believe are most essential to achieve this ambitious target?
Ans: The logistics sector plays a vital role in any country’s growth, and for India to meet this target, several critical reforms are needed. Infrastructure needs a major upgrade and modernization to improve efficiency and reduce turnaround time. Embracing multimodal transport options, including RORO services via waterways and railways, can significantly cut down carbon emissions while ensuring faster transit. There must be consistent policy support and funding for the development of logistics parks and warehousing facilities. Expanding access-controlled highways and rail freight corridors to connect with all major ports is essential. Additionally, customs clearance processes should be streamlined with better-equipped bonded warehouses, while the workforce must be upskilled and supported with digital tools. Strengthening cold chain infrastructure across the country is also necessary to handle perishables more efficiently.

Q2: How are technologies like AI, ML, and IoT redefining logistics in India?
Ans: AI and machine learning are transformative technologies, especially when supported by quality data. They enable predictive and prescriptive analytics that improve the speed and accuracy of decision-making. These tools also enhance inventory planning and enable route optimization strategies, such as milk runs, to reduce delivery costs. They help in network optimization, resulting in faster and more cost-effective deliveries. IoT is reshaping warehousing operations by offering real-time inventory tracking, ensuring end-to-end visibility for customers, and enabling accurate temperature monitoring—especially vital for cold chain logistics.

Q3: Last-mile delivery continues to be a major bottleneck. What can be done to improve it?
Ans: Addressing the last-mile delivery challenge requires a combination of Industry 4.0 solutions, smart warehousing, and AI/ML-driven delivery planning. Geo-tagging of customer locations and the use of real-time data from IoT devices can lead to more precise and faster deliveries. Government support in accelerating the adoption of digital tools and upskilling the workforce is crucial. We’ve already seen promising innovations like 10-minute deliveries from Zepto and Blinkit, though these are mostly confined to Tier 1 cities due to high operational costs.

Q4: In a world of shifting geopolitical dynamics, how can India de-risk its logistics while boosting global trade?
Ans: As nations increasingly turn inward and adopt protectionist policies, India must ensure its logistics and supply chains are low-cost, agile, and adaptable to change. This can be achieved through the modernization of infrastructure and the use of advanced digital tools such as AI, ML, and IoT across logistics operations. Port handling capacities and customs procedures must be improved to cut turnaround times and boost efficiency. India can also learn from China’s ability to rapidly implement infrastructure and tech upgrades. Our universities must become centers of innovation, and industries should be empowered to scale these innovations quickly.

Q5: Customs and regulatory bottlenecks often slow freight. What’s your take on creating a seamless national logistics framework?
Ans: The implementation of GST, the e-Way Bill system, and e-invoicing has already made a significant impact by cutting down transit times by 20–30% at many nodes. Modernization of customs procedures and the use of online portals for filling out Bills of Entry have also contributed to faster processing. However, more can be done. AI can be leveraged to expedite import-export operations and assist in quicker risk assessment and case resolution. While some regions like the Northeast still face challenges, ongoing government support can help bring about noticeable improvements soon.

Q6: Many mid- and small-scale logistics players still lack digital adoption. How do we bridge this digital divide?
Ans: The slow pace of digital adoption among smaller logistics players is due to several factors—high costs of technology, low digital literacy, and limited access to modular, cloud-based, or IoT-enabled solutions. To overcome this, government, industry, and academia must come together to design affordable and innovative tools tailored for these businesses. India needs to shift from merely implementing global solutions to creating its own innovations. Beyond technology, fostering a digital culture and investing in workforce upskilling and process transformation are essential for inclusive growth across the logistics value chain.