CARGOCONNECT-APRIL2026 - Flipbook - Page 28
COVER STORY
INFRASTRUCTURE IMPERATIVE
Rail transport is 50% more
cost-effective than longdistance road haulage.
A key national objective remains the
reduction of logistics
costs as a percentage of GDP to levels
comparable with
global benchmarks.
Achieving this goal
will require sustained investment in
infrastructure, continued improvements
in domestic taxation
frameworks and further simplification of
customs processes.
Encouragingly,
progress is already
visible across these
areas.
ASHISH GUPTA
COUNTRY HEAD–
LOGISTICS, HP (INDIA)
28 | CARGOCONNECT APRIL 2026
customs operate through ICEGATE, GST relies
on E-Way bills, and highways use FASTag,
these platforms do not fully communicate to
each other,” resulting in “no single logistics
visibility layer” and “no predictive clearance
dashboard,” which ultimately drives “reactive
昀椀re昀椀ghting, bu昀昀er inventory, and conservative
transit commitments.”
The implications of this fragmentation
extend beyond transport execution into manufacturing competitiveness itself. Vishal explains,
“From a ‘Make in India’ lens, infrastructure
gaps are most visible at the ecosystem level, not
just factory level,” adding, “Reliable inbound
logistics for components, faster movement
between vendor clusters and assembly units,
quality warehousing near manufacturing
zones, and predictable outbound connectivity to pan India markets.” Without these
enablers, he notes, “Local manufacturing
loses competitiveness versus imports, even
when capability exists.”
Encouragingly, India’s physical logistics infrastructure trajectory continues to
strengthen overall supply chain performance
outcomes. As Gupta explains, “Major improvements in road connectivity, expressway
development and large-scale initiatives such
as multimodal infrastructure programmes
and DFCs have contributed to reducing transit
times and improving service reliability,” adding that, “These developments are helping
organisations serve markets more e昀케ciently
while supporting cost optimisation across
supply chain networks.”
Gupta further highlights that India’s logistics ecosystem is bene昀椀ting from “continued
budgetary allocations aimed at strengthening logistics infrastructure,” contributing to
improvements in the country’s global logistics
performance positioning.
However, synchronising physical infrastructure gains with sector-specific cargo
handling readiness remains critical for highvalue and temperature-sensitive supply chains.
Edward explains, “Pharma and perishables
are among India’s fastest growing air cargo
segments, yet high quality cold chain infrastructure remains largely metro centric.”
He further notes that industry stakeholders
continue to face “temperature excursions,
limited end-to-end shipment visibility, and
vulnerabilities in last-mile delivery,” reinforcing the need for “an unbroken cold chain
supported by well positioned, pharma grade
infrastructure such as a dedicated reefer 昀氀eet,
advanced packaging solutions, automated
compliance systems, and wide body freighter
connectivity to global markets.”
These requirements are becoming more
important as pharmaceutical manufacturing
expands beyond traditional metro clusters.
Edward explains that with the growth of
tier II and III pharma hubs such as Baddi,
Indore, Haridwar, Sikkim, Visakhapatnam,
Vadodara, Aurangabad, and Hosur, “the need
for enhanced pharma grade infrastructure
and reliable freighter connections has become
signi昀椀cantly more pronounced.”
Policy-level coordination mechanisms
are already emerging to strengthen these
linkages. Edward notes, “Interventions such
as allowing foreign wide-body freighters to
uplift cargo from multiple Indian airports
within a single rotation can strengthen regional
cargo connectivity and improve cold-chain
continuity, while investments in automated
screening infrastructure and pre-arrival
data integration can further accelerate cargo
clearance timelines without compromising
security frameworks.”
Customs modernisation e昀昀orts are also
progressing through structured regulatory
upgrades. Shah explains that the present
customs and security procedures are adequate,
while noting that initiatives such as SWIFT 2.0
are expected to reduce coordination timelines
between agencies. He further adds, “Regulators
and air cargo complexes must sensitively
understand the needs of customs inspection.
In hindsight, improvements in cargo-handling
alignment remain an ongoing process that will
continue strengthening operational readiness
across India’s cargo gateways.”
Looking ahead, the next transformation
phase across India’s logistics ecosystem is
expected to be defined by automation-led
coordination rather than asset-layer expansion
alone. As Yadav explains, “Supply chains are
moving toward environments where execution
occurs with minimal manual intervention,
supported by autonomous material handling,
sensor-based asset intelligence, AI-driven
planning systems, automated compliance
and documentation, and real-time digital
orchestration.”
As he puts across, “Humanless and
touchless logistics will de昀椀ne the next era of
operational excellence.”
Advancing the conversation toward
intelligence-driven execution models, Patodi
explains that “logistics visibility is now moving
beyond basic GPS tracking toward full journey
safety monitoring supported by real-time
Dedicated Freight Corridors
now decouple cargo from
congested passenger lines.
