India’s Freight Movement Expected To Reach 28 Billion Tonnes By 2047: CII-Knight Frank Report

New Delhi, May 29 (KNN) India will require around 215 next-generation Multimodal Logistics Parks (MMLPs) by 2047 to support the country’s freight transformation and accelerate a shift towards rail-based cargo movement, according to a joint report by Confederation of Indian Industry (CII) and Knight Frank India.
 
The report, titled Fast-Tracking MMLPs to Enable Modal Shift: India’s Multimodal Logistics Transformation, said India’s freight movement is projected to rise to nearly 28 billion tonnes by 2047.
 
MMLPs Seen As Key To Rail Freight Expansion
 
It estimated that if MMLPs were to handle even 30 percent of India’s total rail freight movement, they would need to process around 3,162 million metric tonnes (MMT) of cargo annually.
 
At present, operational MMLPs handle around 129 MMT of cargo annually, accounting for only 2 percent of the country’s freight movement.
 
The report highlighted that India’s logistics efficiency improved by 59 percent between FY2016 and FY2026, supported by increased investments in highways, railways, ports and logistics infrastructure.
 
According to the report, annual capital expenditure across transport infrastructure increased from USD 10 billion in FY2016 to USD 57.6 billion in FY2026, while total investments over the decade touched nearly USD 360 billion.
 
Logistics Costs Fall Amid Infrastructure Push
 
Commenting on the findings, Chairman and Managing Director, Knight Frank India, Shishir Baijal said, “India’s logistics transformation is now entering a scale-driven phase.”
 
He added that MMLPs could become ‘the critical link between infrastructure creation and freight efficiency’ by lowering logistics costs, improving rail adoption and supporting India’s manufacturing and export competitiveness.
 
The report estimated that improved transport infrastructure has reduced India’s logistics costs to nearly 10-10.5 percent of GDP in FY2026, generating annual savings of around INR 10.8-11.7 trillion.
 
Report Calls For Integrated Multimodal Infrastructure
 
Despite infrastructure gains, road transport still accounts for nearly 70 percent of freight movement by tonne-kilometre, compared to 27.4 percent for rail and 2.5 percent for waterways.
 
The report said MMLPs can help address this imbalance by integrating road, rail and port infrastructure with mechanised handling, warehousing and digital systems to improve freight efficiency.
 
It further estimated that integrating Dedicated Freight Corridors (DFCs) with MMLP infrastructure could reduce overall door-to-door freight costs by nearly 43 percent compared to road-only transport models.
 
Ashwani Gupta, Chairman, CII National Committee on Ports and Shipping, said the logistics sector is now moving ‘from pure infrastructure creation towards network integration and operational efficiency.’
 
He noted that integrated logistics infrastructure and digital platforms such as ULIP could improve supply-chain resilience and support India’s long-term economic growth.
 
The report also called for faster implementation of MMLPs through stronger inter-ministerial coordination, improved first and last-mile connectivity, and utilisation support through freight demand from central public sector enterprises during the initial years of operation.
 
(KNN Bureau)