Geographical conditions and main methods of transportation
Situated in South Asia, with the Himalayas in the North, and the Indian ocean in the south, India has more than 7.5 thousand kilometers of mainland coastal line and almost 3.3 million square kilometers of landmass. India predominantly relies on sea and air transport for its international trade. Meanwhile, as the second most populous country, many metropolitans and states are inland. Freight transport in those regions is dependent on road and railway. India has the world’s third largest railway sector which is run by public enterprises. In recent years, the government has invested heavily in modernization and expansion of the railway system. Several dedicated freight corridors are under construction and planning. Despite an adequate road density which corresponds to the ratio of total road network to the land area in the county, India’s quality of road infrastructure remains subpar in comparison to other countries. Moreover, government funding and private investments have been increasingly flowing into these sectors.Logistic hubs in India
India has had comparatively high logistics costs at 14 percent of the GDP in comparison with other BRICS countries which stood at 11 percent. The high cost of logistics is partially due to the inefficient modal mixture. In order to boost competitiveness in this sector, the Indian government proposed the construction of 35 multi-modal logistics parks (MMLP). These MMLPs are freight handling facilities with a minimum area of 100 acres. This includes access to various modes of transportation, mechanized warehouses, specialized storage facilities, and other related facilities and terminals. E-commerce and third-party logistics constituted the largest share of warehousing transactions in India.
