Gati Shakti & the Digital Freight Future: How Logistics Startups Can Fuel India’s $160B Vision

India’s logistics sector is undergoing a major transformation, driven by the government’s flagship initiatives PM Gati Shakti and National Logistics Policy aimed at reducing logistics costs from 13-14% of GDP to a more competitive 8-9%. At the core of this shift is the rapid digitization of supply chain and freight forwarding operations, supported by a wave of tech-driven logistics startups. The government’s push is part of a broader strategy to built a $160 billion logistics economy, crucial for strengthening international trade and supply chain efficiency. 

Launched in 2021, PM Gati Shakti-National Master Plan is a groundbreaking digital platform integrating infrastructure planning across 43 ministries. The system leverages GIS mapping to synchronize development of roads, railways, ports, airports and logistics hubs, expediting project execution and improving multi-modal connectivity. 

To date, more than 400 major infrastructure projects worth Rs. 11.17 lakh crore have been identified under the plan. The initiative also facilitates the creation of Multi-Modal Logistics Parks, cargo terminals and enhanced last-mile connectivity laying the foundation for efficiency, national scale freight forwarding. 

India’s growing network of logistics tech startups is playing a critical role in reshaping the traditional supply chain. These companies are creating accessible, efficient and scalable logistics platforms, especially for SMEs which contribute over 30% to India’s GDP but often face severe logistics challenges. These solutions are democratizing logistics for SMEs, particularly in Tier 2 & Tier 3 cities, enabling them to participate more effectively in national and international supply chains,