India’s Logistics Overhaul Fuels Export Growth amid Global Trade Challenges: Economic Survey 2024-25

The Survey underscores the government’s focus on enhancing logistics efficiency, streamlining supply chains, and leveraging digital transformation to navigate a volatile global trade environment marked by rising protectionism and supply chain disruptions. A key highlight of the Survey is the emphasis on improving logistics efficiency to bolster India’s manufacturing and export capabilities. The development of logistics hubs, infrastructure investments, and policy reforms aimed at optimizing supply chains are central to this effort. These initiatives align with the National Logistics Policy and are designed to reduce costs for Indian businesses, ensuring smoother movement of goods both domestically and internationally.One standout achievement is the paperless e-BRC (Bank Realisation Certificate) system, a critical digital tool for exporters. This system has streamlined processes, reduced administrative and environmental costs, and saved over ₹125 crore annually for 2.5 million e-BRCs. Small exporters, particularly in e-commerce, have benefited from its efficiency in handling high-volume, low-cost transactions, enabling them to claim benefits and refunds more effectively. The Open Network for Digital Commerce (ONDC) is another logistics-focused initiative integrating hyperlocal and inter-city logistics service providers. This integration ensures seamless supply chain connectivity across 1,200+ cities, enhancing first-mile, middle-mile, and last-mile delivery efficiency. Such efforts are transforming India’s logistics landscape, making it more agile and responsive to the needs of exporters.   Budget 2025 Expectations: Logistics Sector Awaits Bold Reforms and Infrastructure Boost

The launch of the DGFT Trade Connect e-Platform marks a significant step in digitizing trade logistics. This single-window initiative connects over 6 lakh IEC (Importer Exporter Code) holders, 180 Indian Mission officials, and 600 Export Promotion Council officials, offering real-time access to trade-related information and seamless connectivity to government entities. Developed in collaboration with the Ministry of MSME, EXIM Bank, Department of Financial Services, and the Ministry of External Affairs, the platform is a game-changer for MSMEs, providing comprehensive support and resources to navigate international trade. Complementing this is the DGFT Trade Facilitation Mobile App, which provides updates on the Foreign Trade Policy (FTP), import/export policies, statistics, application statuses, and 24×7 virtual assistance. Additionally, the auto-generation of e-IEC eliminates the need for manual approvals, with IEC details automatically validated against CBDT, MCA, and PFMS systems. These digital tools are empowering exporters with faster, more efficient logistics solutions.

Despite a complex global trade environment, India’s total exports—spanning merchandise and services—grew by 6% in the first nine months of the financial year, while imports grew by 6.9%, reflecting steady demand and supply dynamics. Services and non-petroleum, non-gems and jewellery exports recorded a robust 10.4% growth, underscoring the competitiveness of India’s manufacturing, agriculture, and services sectors.However, the global trade landscape remains volatile. Geopolitical events such as the Red Sea crisis, the war in Ukraine, and drought conditions in the Panama Canal have disrupted trade routes…In response to these challenges, India is pursuing a proactive trade strategy with a strong focus on logistics and supply chain optimization. A key component is the negotiation of Free Trade Agreements (FTAs) to secure better market access…As India navigates evolving trade dynamics, the government’s focus on logistics efficiency, digital transformation, and strategic trade agreements positions the country to adapt to the changing global order. By leveraging logistics as a catalyst for growth, India is not only strengthening its export competitiveness but also setting a new benchmark for supply chain excellence in a turbulent global market.