India’s future imperatives

Since a large part of India’s future logistics network is still to be built, the country has a chance to build an integrated and coordinated infrastructure to meet anticipated demand in which the development of each mode –railways, waterways and roads – is matched to needs and existing assets are better utilised.

According to the report, if India fails to achieve this, waste caused by poor logistics infrastructure will increase from the current level of US$45bn (4.3% of GDP) to US$140bn by 2020 (more than 5% of GDP).

To achieve the desired results, McKinsey report has suggested four major shifts for the Indian authorities which include: building the right network and ensuring flows on the right mode comprising seven high density long-distance corridors (rail and coastal waterways), 150 medium-distance rail and road connectors and about 700 last mile links. In addition, the need will be develop 15 to 20 logistics parks to enable entrepreneurs s to maximise the efficient use of the network.