January 5, 2026

“Logistics Transportation for the Future: Insights From an Expert“

Introduction:

A single landslide can stall hundreds of trucks. A flooded highway can delay medicine delivery by a day. A blocked port can freeze exports overnight. These are not rare events they are everyday reminders of how fragile yet essential India’s logistics network truly is. As the country’s economy scales rapidly, the future of logistics will depend not just on roads and warehouses but on how smart, visible, and connected our supply chains become.

Why Technology enhancement is important in Logistics Today in India (with verified stats)

Logistics influences almost every aspect of India’s economy from how industries operate to how quickly goods reach citizens. According to the latest DPIIT–NCAER estimate, logistics costs are now about 7.97% of India’s GDP (FY 2023–24), and is expanding into a USD 228+ billion market underlining how central supply-chain efficiency is to national economic performance. As new infrastructure, digital tools, and policy initiatives begin to reshape logistics, understanding this evolving sector has never been more critical. Expert insights help decode this fast-churning landscape, offering grounded guidance on both opportunities and challenges. master-dpiit.digifootprint.gov.in+2ETManufacturing.in+2

Ground Realities Shaping India’s Logistics (with verified mode-cost data)

India’s logistics landscape faces several high-impact challenges that reveal how fragile the system can be on the ground. Choke points like the Siliguri Corridor can disrupt supply to eight northeastern states with a single accident, while landslides on the Manali–Leh Highway often halt defence and civilian convoys. Major ports continue to struggle with container congestion that delays exports for days, and monsoon flooding in states such as Assam and Bihar regularly cuts off essential supplies. The costs and efficiencies vary significantly by transport mode: for instance, rail transport remains much cheaper at ₹1.96 per tonne-km, compared with ₹11.03 per tonne-km by road highlighting how inefficiencies creep in when reliance on road transport predominates. As India works toward matching global benchmarks, it needs stronger data visibility, resilient infrastructure, and inclusive digitisation to keep supply chains moving. The Economic Times+1

To understand the challenges faced by Indian Logistics sector, we got an opportunity to interact with “Prof. Gita Krishnan Ramadurai, faculty at IIT Madras and an expert in transportation systems and mobility, shares his comprehensive perspective on the current logistics landscape, highlighting key structural issues, operational bottlenecks, and the strategic interventions required to strengthen India’s supply chain ecosystem.

1.India’s logistics and transportation ecosystem has seen tremendous growth in recent years. From your perspective, how do you see this sector evolving with the increasing emphasis on technology and sustainability?

“India is currently in an accelerated phase of infrastructure development, with the government taking multiple initiatives to reduce logistics costs and enhance convenience. Alongside this, rapid technological transformation is reshaping logistics and transportation, which are set to undergo major changes in the coming decade. This is an opportune moment for the government to leverage technology, learn from global best practices, and leapfrog into a tech-enabled mobility and logistics ecosystem that drives significant progress.”

2. Government initiatives such as PM Gati Shakti and the GoULIP are being positioned as major enablers of multi modal connectivity and efficiency. In your view, how are these programs transforming India’s logistics landscape, and what further improvements could enhance their impact?

“It’s a very positive start. Gati Shakti has simplified access to infrastructure data and approvals through an integrated single-window system, which is encouraging. However, more can be done especially in using data and monitoring to better prioritize projects. The logistics data portals are also a great initiative, but data still exists in silos across ministries and stakeholders. To move forward, seamless data sharing and clear policies enabling interoperability are essential.”

3. While India’s physical infrastructure such as logistics parks, corridors, and warehousing is expanding rapidly, digital systems like IoT, analytics, and real-time visibility tools are still developing. How can the gap between infrastructure growth and data-handling capability be effectively bridged?

Established companies already have well-mapped supply chains with real-time visibility, greatly improving efficiency. However, smaller players still lag in digitization. Instead of going infrastructure-intensive, a software-driven approach leveraging smartphones for real-time tracking would be more practical and effective for them.

4. Startups are playing a significant role in bringing agility and innovation to the logistics sector through IoT-enabled tracking, route optimization, and automation. How do you assess their contribution to India’s logistics transformation, and what kinds of innovations stand out to you as particularly impactful?

There are many startups in the logistics space today, and multiple technical solutions already exist. The real challenge lies not in technology but in marketing and implementation ensuring these solutions effectively reach and benefit more people.

5. Do you believe stronger collaboration between universities, research institutions, and logistics companies can accelerate technological innovation and implementation? What models of partnership or knowledge exchange have you found most effective?

Startups can play a crucial role, but success requires a balance between data-driven insights and practical realities. They must collaborate closely with engineers and clients to understand on-ground challenges, rather than offering one-size-fits-all solutions. This approach builds confidence and leads to truly effective, real-world implementations.

6. Every large-scale transition brings its own challenges. What are some of the major challenges technological, organizational, or policy-related that India must address to realize a truly smart, data-driven logistics ecosystem?

The key challenge lies in moving away from legacy systems and adopting new, tailored technological solutions suited to specific use cases. While developing the right technology is achievable, the bigger hurdles are the willingness to embrace change and to invest in modernization both essential for achieving long-term, sustainable growth.

7. With sustainability emerging as a national and global priority, how do you see IoT and data-driven systems contributing to greener and more energy-efficient transport networks in India?

Sustainability is well understood, but what’s changing now is our ability tomeasure its impact accurately. With IoT and data-driven models, we can quantify sustainability efforts, making it easier to assess real outcomes and build confidence in adopting green logistics. This also opens opportunities in emerging markets like carbon credits and affordable logistics data, where quantifiable insights can drive new funding sources and economic models.

8. In your view, what are some of the most under explored areas in logistics where data science or IoT could create the biggest impact in the coming years?

AI and data science are transforming every field, including logistics, by improving efficiency and reducing costs. The real advantage will go to those who adapt quickly and dynamically. While these systems already show promising results, reliability and trust are still key AI needs some human oversight until it matures. Technologists must remain practical and avoid over promising, while customers should stay open to adopting these innovations. Striking this balance is crucial for meaningful progress.

9. Looking ahead, how do you envision India’s logistics sector five years from now? What would an ideal, intelligent, and sustainable logistics system look like in your view?

Automation will play a major role in the logistics sector over the next 10–15 years. While manpower dominates costs and contributes to many operational issues, automation can significantly improve efficiency and safety — though full adoption will take time. Seamless multi modal transfers, continuous monitoring, and real-time tracking will become standard practices. Additionally, reverse logistics will expand as secondary markets grow, enabling free movement of goods in both directions. In the coming years, India could see a shift toward a service- or rental-based economy, where consumers increasingly resell or share used goods — creating new logistics opportunities.

To Conclude

India’s logistics sector is evolving rapidly, and today’s on-ground realities make it clear that the next phase of progress will hinge less on building infrastructure and more on how intelligently we use it. Technology becomes the real enabler here, cold-chain temperature, or vehicle health; or through digital tools that improve visibility, automate workflows, and support real-time decision-making. Platforms like LogiNext already demonstrate how dynamic re-routing and live risk alerts can keep supply chains moving during disruptions.

As Prof. Gita Krishnan Ramadurai emphasizes that the real challenge now lies in moving beyond legacy systems and adopting solutions that are genuinely suited to India’s diverse use cases. This shift is also visible in industry innovations companies like Gyrfalcon Intelliedge Solutions, for instance, are advancing fleet management and edge-intelligent systems, helping logistics operators optimize performance.

India’s path toward a smarter, more resilient logistics ecosystem will ultimately depend on how effectively these technologies, policies, and operational practices integrate. If these elements come together thoughtfully, India is poised to build a logistics network that is not only efficient, but future-ready.

Technical Content & Editor-in-Chief, IoT Watch

Soumya Mukthavaram