NLP@3: Transforming India’s global trade strategy

As 2025 unfolds, the success of NLP will depend on its continued emphasis on sustainability, multimodal connectivity, and digital innovation.

Launched on September 17, 2022, by Prime Minister Narendra Modi, India’s National Logistics Policy (NLP) marked a decisive milestone in the country’s quest to modernise its logistics sector. The policy was envisioned to reduce logistics costs from 13–14 percent of GDP to single digits, enhance efficiency, and elevate India’s global competitiveness.

Three years later, the NLP has emerged as a cornerstone of India’s growth story, driving infrastructure expansion, digital transformation, and multimodal integration. Aligned closely with the PM GatiShakti master plan, it is laying the foundation for seamless connectivity across India’s transport and supply chain networks.

Reshaping logistics

In these three years, the policy has delivered significant results. The Unified Logistics Interface Platform (ULIP) is now fully operational, handling more than 160 crore transactions and offering real-time visibility across logistics assets. With the removal of interstate checkpoints and streamlined GST reforms, logistics costs are projected to decline to around nine percent of GDP by the end of 2025.

India has also seen its position in the World Bank’s Logistics Performance Index improve markedly, climbing from 44th in 2018 to 38th in 2023, with a notable 22nd rank in international shipments. These improvements, coupled with investments in dedicated freight corridors, ports, and airports, are reshaping India’s logistics backbone while reducing excessive reliance on road transport.

Industry leaders agree that the NLP has transformed the sector. Ketan Kulkarni, Managing Director & CEO of Allcargo Gati Limited and GESCPL, notes that the NLP has reshaped India’s logistics ecosystem into one that is more cost-efficient, transparent, and globally competitive.

He pointed out that with logistics costs expected to fall to nine percent of GDP by 2025 and with seamless multimodal transport gaining momentum, the policy is driving a faster, greener, and more inclusive supply chain. The integration of ONDC, he adds, has brought innovative logistics solutions within reach of SMEs, aligning with India’s broader digital transformation journey.

Digital innovation

Digital innovation has been another hallmark of the policy. Initiatives like the Open Network for Digital Commerce (ONDC) are enabling small and medium enterprises to access logistics services more efficiently, while expanding opportunities for technology-driven supply chains.

The growing adoption of digital platforms is not only streamlining operations but also fostering greener, more resilient supply chains, consistent with India’s ambition to establish itself as a leading logistics hub in Asia.

Gregory Goba-Blé, Head of UPS India and Director of MOVIN Express, describes it as a strategic enabler of India’s economic ambitions. According to him, the policy has accelerated digital innovation, advanced intelligent supply chain systems, and invested in workforce development, thereby enhancing agility and service reliability. He emphasised that flagship initiatives such as PM GatiShakti and ULIP are helping position India as a logistics leader in Asia.

Challenges persist

While domestic reforms have strengthened India’s logistics foundations, geopolitical shifts are creating new opportunities and challenges. Escalating trade tensions between the United States and China, coupled with renewed tariffs and protectionist policies, have fuelled the “China+1” strategy, drawing supply chains toward India.

Meanwhile, conflicts such as the Russia-Ukraine war and disruptions in the Red Sea have exposed vulnerabilities in global trade routes, inflating costs and delaying shipments. Climate change, resource scarcity, and territorial disputes in key shipping lanes are adding to these risks, pushing companies toward nearshoring and digital risk management.

However, industry leaders believe that for India, these shifts open up new possibilities. Strategic initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) are expected to enhance connectivity and strengthen India’s role as a de-risking hub amid global fragmentation.

By capitalising on such opportunities, India can cement its position in emerging trade corridors while supporting global efforts to diversify supply chains away from overdependence on a single region.

“As 2025 unfolds, the success of the National Logistics Policy will depend on its continued emphasis on sustainability, multimodal connectivity, and digital innovation. With stronger infrastructure, streamlined processes, and collaborative government–industry partnerships, India is steadily shaping itself into a resilient and competitive logistics hub. In the years ahead, the NLP is likely to remain a powerful catalyst for sustainable growth, supply chain resilience, and global competitiveness,” another expert said.