In a significant move aimed at revolutionising India’s logistics sector, the government is charting out a National Master Plan for the development of highways and expressways, with the ambitious goal of enabling trucks to cover over 800 kilometres per day by 2047.
Revealed by a senior official on Thursday, this initiative is poised to redefine the efficiency and scope of the country’s trucking infrastructure. Currently, trucks in India traverse approximately 300-350 kilometres in a day, lagging international benchmarks set by countries like the US and Europe. While European regulations allow for a daily coverage of up to 750 kilometres, US drivers can legally travel distances ranging from 1100 to 1200 kilometres per day, driving at speeds of 100 kilometres per hour. The proposed expansion of expressways and highways is expected to facilitate increased trucking speeds, thereby reducing logistics costs by an estimated 3-4%. This development aligns with the government’s broader agenda of enhancing India’s competitiveness in the global logistics landscape. Recent studies, including the ‘Logistics Cost in India: Assessment and Long-Term Framework’ conducted by the National Council of Applied Economic Research (NCAER) in collaboration with the Asian Development Bank (ADB), highlight the significance of optimising logistics operations. Currently, logistics costs in India range between 7.8% to 8.9% of the total economic output, indicating room for improvement.
To address these challenges comprehensively, the government introduced a logistics policy in September last year, with the aim of aligning India’s logistics costs with global benchmarks by 2030. Additionally, initiatives are underway to enhance India’s ranking in the World Bank’s Logistics Performance Index (LPI) and establish a data-driven decision support mechanism for an efficient logistics ecosystem. Under the proposed National Master Plan, approximately 50,000 kilometres of access-controlled highways are slated for construction, strategically positioned within 100-125 kilometres from any point in the country. This extensive network, coupled with ongoing highway development programs like Bharatmala, is poised to bolster India’s transportation infrastructure significantly.
Moreover, alongside the development of greenfield expressways, the government is focusing on augmenting the capacity of existing highways. The share of highways with less than 2-lane width has decreased from 30% in 2014 to 10% in 2023, while the length of highways with four lanes or more has increased to 32% of the total. In essence, the government’s concerted efforts to modernise India’s trucking infrastructure underscore its commitment to fostering economic growth and competitiveness in the global arena. With meticulous planning and strategic execution, India is poised to transform its logistics landscape, setting new benchmarks for efficiency and sustainability in the years to come.
