With breezier toll exits, logistics movement in India looks to hit global fast lane

This reduction is crucial for India as it seeks to enhance its global competitiveness by slashing logistics costs, currently hovering at 13-14 percent of the GDP and significantly higher than in most developed nations. To further support this goal, there is a growing push towards implementing a free-flow tolling mechanism using automatic number plate recognition (ANPR) and global navigation satellite system (GNSS) technologies. These allow vehicles to pass through toll plazas without stopping, ensuring uninterrupted traffic flow.

This reduction is crucial for India as it seeks to enhance its global competitiveness by slashing logistics costs, currently hovering at 13-14 percent of the GDP and significantly higher than in most developed nations. To further support this goal, there is a growing push towards implementing a free-flow tolling mechanism using automatic number plate recognition (ANPR) and global navigation satellite system (GNSS) technologies. These allow vehicles to pass through toll plazas without stopping, ensuring uninterrupted traffic flow.

India’s ranking in the World Bank’s Logistics Performance Index is 38, with a score of 3.4. China is ranked 19th with a score of 3.7. India’s rank is similar to that of countries such as Turkey, Saudi Arabia and Portugal. The country was ranked 44 in 2014.

The reduction in toll plaza wait times, therefore, dovetails into the broader Gati Shakti goals of having a seamless transport network that avoids bottlenecks and reduces transit time across the country. Other sectors beyond road transport are also realising the efficiency gains. For example, the average turn-around time for container vessels at Indian ports has come down from 44 hours to 26 hours, a substantial improvement in terms of accelerating the logistics chain.

To further enhance logistical efficiency, the Union Ministry of Road Transport and Highways has dedicated multi-modal logistics parks (MMLP). Six of these have been awarded until FY24 and Rs 2,505 crore earmarked for dedicated MMLPs in FY24. Another seven MMLPs are planned to be awarded in FY25.

The government believes most of the logistics costs are related to price competitiveness in the global market, attracting foreign investment and increasing the capacity of domestic businesses to scale up operations efficiently. Improvements in logistics efficiency are thus not only a matter of convenience but integral to India’s economic strategy.