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The Big Challenge Facing India’s Road Freight Sector

March 10, 2025 1 min read
author Anamika Mishra, Sub Editor

India’s road freight sector, responsible for nearly 70% of cargo movement in the country, is struggling with rising costs, poor infrastructure, and outdated regulations. Despite being the backbone of domestic logistics, inefficiencies in the sector lead to higher transportation costs, delays, and environmental concerns.

One major challenge is the condition of roads and highways, which affects transit times and vehicle wear and tear. While the government has been investing in expressways and logistics corridors, rural connectivity remains a concern. Additionally, fluctuating fuel prices and high toll costs further impact the profitability of trucking businesses.

Another critical issue is the shortage of skilled drivers. Long hours, safety risks, and inadequate facilities discourage young professionals from entering the field. The push for digital freight management, electric vehicles, and sustainable logistics solutions is helping, but widespread adoption is slow.

Industry experts suggest that modernizing trucking fleets, digitizing logistics operations, and simplifying regulations could significantly improve efficiency. As India’s economy grows, ensuring a seamless and cost-effective road freight system will be essential to maintaining supply chain stability and supporting the country’s trade ambitions.


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