Copy 5
India eyes AV freight to cut logistics cost
India is drafting a bold logistics policy shift that could usher in autonomous freight transport across its Dedicated Freight Corridors (DFCs) and Industrial Corridors (DICs).
With logistics costs currently at 14% of GDP—well above the global average—officials say driverless, electric trucks running on AI-managed, satellite-monitored routes may offer the breakthrough the country needs. The blueprint proposes the rollout of AV-dedicated lanes, 5G-enabled vehicle-to-infrastructure (V2I) systems, and LiDAR-based digital mapping to build a seamless, real-time logistics network. The initiative will focus on leveraging India’s existing Gati Shakti Master Plan and space technology to track and manage goods movement with minimal human intervention. “India’s DFCs, including the 3,300-km Eastern and Western corridors, are greenfield and digitally integrated, offering a rare chance to build autonomous freightways from the ground up,” an official involved in the planning process said. Globally, countries like the US and China have already begun deploying driverless freight vehicles, reducing transport costs by up to 40%.
In addition to road freight, India plans to link autonomous systems with ports, refineries, and railway cargo units, including the busy Jawaharlal Nehru and Paradip ports. The strategy includes automating container trucks and cargo handling, particularly in high-risk areas such as oil and chemical sectors. Critics cite the high capital cost of infrastructure development as a barrier. However, officials argue that funding can be reallocated from the ₹100 lakh crore Gati Shakti programme and PLI incentives, especially for domestic AV component manufacturing. The aim is to reduce import reliance and build a homegrown autonomous logistics industry. Policymakers are now being urged to fast-track regulatory frameworks and pilot testing within DFC zones. “If India delays, global AV players will dominate. But if we move now, we can lead globally in smart freight systems,” said a logistics industry expert.
The proposal has been positioned not just as a transport solution, but as a strategic opportunity to reduce emissions, create skilled jobs, and set a global benchmark in smart mobility.
