The Indian Logistics Sector in 2025

Resilience, Infrastructure Maturation, and the Pivot to Strategic Agility
By Shantanu Bhadkamkar, President, Association of Multimodal Transport Operators of India (AMTOI)

Strategic Recalibration: The year 2025 will be recorded as a period of profound structural realignment for the Indian logistics and international trade community. In the face of global volatility - among numerous other things, characterised by the USA’s tariff regime and prolonged Red Sea diversions - India’s logistics sector demonstrated remarkable resilience, pivoting from cost-optimisation to strategic agility.

 

Infrastructure and Connectivity: Domestically, the narrative was defined by the maturation of hard and soft infrastructure. The Western Dedicated Freight Corridor (WDFC), which is fast nearing completion, has finally synchronised northern manufacturing hubs with western ports, drastically reducing transit times.

Legal and Regulatory Reforms: Legal reforms have unified the legal framework, boosting confidence. Key achievements include a framework for validating electronic documents and a quicker shift to non-negotiable sea waybills for trusted routes. The UNCITRAL Convention introduced the “negotiable cargo document” (NCD), a harmonised legal instrument functioning like a maritime seawaybill across all transport modes (rail, road, air and sea) in unimodal and multimodal scenarios. The new convention aims to: Transfer Title (allow NCDs to transfer ownership); Support Trade Finance (enable NCDs to settle financial transactions and serve as collateral); and Legalise E-Records (provide a framework for negotiable electronic cargo records).

Maritime Sovereignty and Flagging: A landmark development for Atmanirbhar Bharat was the resurgence of the Indian flag carrier. While CMA CGM initiated the trend, Maersk has also committed “skin in the game” by reflagging vessels. While the immediate on-ground impact on total capacity is minimal, the strategic signal is unmistakable: global carriers are aligning deeply with India’s maritime sovereignty.

Global Trade and Defence Logistics: On the trade front, India countered protectionist headwinds by finalising the India-UK Free Trade Agreement and the CEPA with Oman, opening crucial gateways just as US market access tightened. Defence logistics emerged as a standout vertical, with private sector players driving exports to record highs, necessitating new protocols for secure, specialised transport. 

Challenges and Outlook for 2026: As always, challenges persist  

The sector faces a paradox - rapid AI adoption amid a scarcity of skilled human talent. As we enter 2026, the focus must shift to deeper compliance scrutiny and stronger KYC norms to navigate an increasingly fragmented global order. Stakeholders should consider how emerging AI technologies will affect employment and operational efficiency, and the need for upskilling initiatives, to ensure sector resilience in the coming years. 

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