These gains have contributed to a substantial reduction in logistics costs across the economy. Knight Frank estimates that improvements in transport infrastructure alone have helped reduce India’s logistics cost to nearly 10-10.5% of the GDP in FY 2026. This improvement has generated estimated annual savings of INR 10.8 – 11.7 trn (USD 122-133 bn), improving India’s competitiveness across manufacturing, trade, and supply chains.
According to CII – Knight Frank India’s new report Fast-Tracking MMLPs to Enable Modal Shift: India’s Multimodal Logistics Transformation, highlights that the country’s next phase of economic competitiveness will depend not only on large-scale infrastructure creation, but on the successful integration of multimodal freight systems through Multimodal Logistics Parks (MMLPs). The report estimates that by 2047, if MMLPs are to handle even a conservative 30% share of India’s total rail freight movement, it would need to process nearly 3,162 MMT of cargo annually. To support this scale, India would require approximately 215 operational next-generation MMLPs, designed with significantly higher throughput capacities and integrated multimodal infrastructure in line with Bharatmala-class logistics assets.
Currently, India’s multimodal logistics ecosystem remains at a relatively early stage of development, with the operational MMLP network currently handling approximately 129 MMT of cargo annually, i.e. merely 2% of the country’s total freight movement. While this underlines the significant headroom for growth, the MMLP programme also reflects steady progress in building the institutional and physical backbone of a nationally integrated multimodal logistics ecosystem.
The report examines how MMLPs can bridge the gap between Dedicated Freight Corridors (DFCs) and India’s fragmented industrial base, particularly MSMEs, enabling a large-scale shift from road-based freight movement toward more efficient multimodal logistics. While India needs more integrated multimodal ecosystem including logistics parks or MMLPs, the long-term success of the same would depend on substantially increasing average throughput capacity. This will require the development of larger-format, high-density multimodal hubs capable of aggregating cargo at commercially viable scales.
From a long-term perspective, the estimates predicted are aligned with India’s freight transformation agenda and the National Rail Plan target of increasing rail’s modal share to 45%. Based on projected domestic freight movement of nearly 28,109 MMT per annum by 2047, India’s rail network would need to handle approximately 12,649 MMT annually to achieve this objective.
Commenting on the report findings Shishir Baijal- International Partner, Chairman and Managing Director, Knight Frank India, said, “India’s logistics transformation is now entering a scale-driven phase. Over the past decade, the country has significantly improved its transport backbone, reflected in a 59% improvement in logistics efficiency and rising infrastructure investments. However, the next stage of growth will depend on effectively integrating these networks. Multi-Modal Logistics Parks can become the critical link between infrastructure creation and freight efficiency by lowering logistics costs, improving rail adoption and supporting India’s long-term manufacturing and export competitiveness. As freight volumes are projected to exceed 28 billion tonnes by 2047, building large, future-ready logistics ecosystems will become central to sustaining logistics efficiency.”
