India’s logistics sector is expanding in scope and complexity. Recent years have seen a steady rise in freight volumes, supported by policy reforms, infrastructure development, and the growth of domestic and cross-border trade. Alongside this growth, there is also a growing need to address coordination gaps across the value chain. One of the key barriers to efficiency remains the absence of integrated data systems that can support better planning and execution across transport modes and service providers.
Freight movement involves multiple layers: transportation, warehousing, customs clearance, port handling, and last-mile delivery. These operations are supported by different stakeholders, each working with their own systems and processes. The result is a fragmented flow of information, where cargo data does not move as easily as physical goods do. This lack of alignment increases waiting time, reduces asset utilisation, and limits the ability to plan across modes. For India to reduce its logistics cost to match international benchmarks, there is a need to address data convergence as a priority.
Working with incomplete visibility
India’s logistics cost is currently estimated at 14% to 16% of GDP. For comparison, countries with integrated logistics networks and planning systems operate at around 8% to 10%. High costs in India are linked to several operational factors: longer waiting periods, higher turnaround times, limited modal flexibility, and underuse of available capacity. In each case, a contributing factor is limited visibility across the chain.
Most of India’s freight continues to move by road and rail and coastal shipping remains underutilised. While infrastructure capacity has improved, decisions on routing and scheduling are still made without access to shared data across providers. This makes it difficult to shift to the most efficient mode in any given situation.
The opportunity lies in making data from different systems accessible through common protocols. If operators can access relevant information in real time, such as expected delays, loading status, or route congestion, they can adjust operations before problems occur. This leads to more reliable delivery timelines and lower overall costs.
Steps already taken
The government has made efforts to address this through the Unified Logistics Interface Platform (ULIP), which links over 30 digital systems across ministries and departments. The platform allows verified logistics providers to access key operational data, which can support more informed decision-making. This is a strong foundation. However, much of the cargo movement in India involves private networks: transport companies, aggregators, warehouse operators, and digital freight platforms. Many of these systems remain disconnected from public data platforms or are unable to communicate with each other due to a lack of common standards. For data convergence to have impact at scale, it must extend beyond government systems and reach private networks as well.
A case for broader collaboration
Reducing the movement of empty containers by matching return loads through digital coordination helps decrease fuel consumption, turnaround times, and overall costs for transporters and cargo owners. Such coordination is only possible when different stakeholders are willing to share information. It also depends on using a standard set of identifiers and APIs to make this sharing practical.
There are concerns around data sharing, particularly where commercial advantage or client confidentiality is involved. These are valid considerations. At the same time, it is possible to design systems where only operationally relevant data is shared for specific purposes. For example, slot availability at a container yard or real-time tracking of a shipment does not require access to pricing or client details.
Neutral data platforms, governed by clear standards, can support this kind of exchange. Industry bodies can also help by developing guidelines on interoperability and helping companies adopt basic digital infrastructure.
Linking policy and execution
Policy can play a role in supporting adoption. Logistics parks and freight corridors that receive public investment could require a minimum level of digital integration for participants. Customs processes, which already operate on electronic data interchange, could be extended to link shipment data with transport platforms. These steps will help establish data convergence as a standard operating practice.
It is also important to ensure that any systems developed are inclusive. Many small and medium logistics providers are yet to digitise their operations. Providing simple, mobile-first platforms and training support can help bring more operators into the network.
The experience with GST and e-way bills shows that when the benefits of integration are clear and the systems are simple to use, even smaller players are willing to adopt. A similar approach can be followed for logistics data infrastructure.
Long-term benefits
Over time, better coordination through shared data will reduce costs, improve asset use, and support more predictable delivery timelines. It will also help shift more cargo to rail and water, where available, and reduce the overall environmental impact of logistics.
India’s trade ambitions will require a logistics sector that is reliable, cost-effective, and responsive to demand fluctuations. Building physical infrastructure is essential, but the next phase of progress will depend on the ability to use information effectively. Data convergence is a necessary step in that direction.