The dedicated freight corridors (DFCs) and multi-modal logistics parks (MMLPs) could help cut India’s logistics cost by nearly Rs 7 lakh crore annually and create close to 10 million jobs, IIM Mumbai has estimated.
The two mega-projects can help connect rail, road and other modes of transport more efficiently, reducing transit time and making supply chains more reliable, the institute said.
Calling DFCs and MMLPs a “real game-changer”, IIM Mumbai said that the logistics sector is expected to require deployment of around 11.5 million additional professionals by 2030.
The study comes days after Prime Minister Narendra Modi inaugurated three key sections of the Western Dedicated Freight Corridor (WDFC), completing the corridor between JNPT in Maharashtra and Dadri in Uttar Pradesh.
The 1,506-km WDFC, built exclusively for freight movement, has increased the railways’ cargo capacity, reduced transit times and made freight movement more predictable.
“The WDFC is a significant step towards transforming India’s freight and logistics network. I see this as a great infrastructure project by the government, with the potential to deliver substantial long-term benefits for businesses and the wider economy,” said Manoj Kumar Tiwari, director at IIM Mumbai.
According to the study, the logistics industry contributes around 13% to GDP. Its market, estimated at Rs 22.95 lakh crore in 2022, is projected to reach Rs 47.12 lakh crore by 2030.
The institute said the next phase will need better coordination in infrastructure planning, simpler GST and regulatory procedures, easier business processes and digital integration. Advanced analytics and agentic AI could improve real-time visibility and freight operations.