India's policy blueprint for smart logistics

Hindustan Times

09-05-2025

If you've ever been stuck behind a never-ending line of trucks on a highway, crawling at a snail's pace while belching out thick clouds of diesel fumes, you've experienced just a fraction of India's freight crisis. Our roads are overloaded, our supply chains are inefficient, and logistics costs are eating into the economy. India moves 4.6 billion tonnes of goods annually, with nearly 60% of freight relying on trucks. Yet, our outdated trucking system is riddled with problems—clogged highways, fuel inefficiencies, and a chronic shortage of drivers, making goods movement slow and expensive. At 14% of Gross Domestic Product (GDP), India's logistics costs are among the highest in the world—far above the 8-10% global average.
But what if we could reimagine freight movement? What if the trucks rolling down India's highways were driverless, electric, and seamlessly connected to a digital logistics grid? This isn't some far-fetched sci-fi vision. Autonomous freight could be India's breakthrough solution to its logistics nightmare—and the perfect launchpad already exists: India's Dedicated Freight Corridors (DFCs) and Industrial Corridors (DICs). These multi-billion-dollar mega-projects, designed to modernise freight transport, offer the perfect testing ground for cutting-edge logistics solutions. If India acts now, we could leapfrog decades of incremental progress and position ourselves at the forefront of autonomous logistics.
Across the world, countries are embracing Autonomous Vehicles (AVs) for freight transport. In the US, companies like Tesla, Waymo, and TuSimple are testing self-driving trucks on highways, promising to cut transport costs by up to 40%. China is racing ahead with AV-integrated logistics hubs, while Europe is developing "truck platooning"—where autonomous trucks travel in synchronized convoys, reducing fuel consumption and emissions. But India has a unique advantage—we're not burdened by legacy infrastructure. Instead of trying to fit AVs onto chaotic urban roads, we can build dedicated AV freightways from the ground up. The Eastern and Western Dedicated Freight Corridors, spanning over 3,300 km, are greenfield projects with cutting-edge infrastructure, meaning we can design them specifically for autonomous trucks—with dedicated AV lanes, Artificial Intelligence (AI)-powered traffic systems, and real-time satellite monitoring.
Second, smart digital infrastructure is crucial. Autonomous trucks can't function without real-time data. India needs to equip its freight corridors with 5G connectivity for seamless vehicle-to-infrastructure (V2I) communication, AI-powered traffic management systems to optimise freight flow, and high-precision digital mapping (using LiDAR and satellite imagery) to ensure AVs can navigate safely. With these technologies in place, freight movement will become faster, more efficient, and significantly safer than today's unpredictable trucking system.
Critics might argue that building AV infrastructure requires huge investments. But India already has the funds—it's just about allocating them wisely. Under the ₹100 lakh crore ($1.2 trillion) Gati Shakti Master Plan, a portion can be earmarked for dedicated AV lanes, AI-driven logistics hubs, and 5G-powered, real-time freight monitoring systems. Additionally, India's Production Linked Incentive (PLI) scheme can incentivise domestic manufacturing of AV components—reducing reliance on imports and creating a homegrown AV industry.
India has a habit of moving slowly on emerging technologies—by the time we wake up to their potential, other countries have already set the rules of the game. If we don't act now, global AV giants will dominate this space, and India will once again be forced to play catch-up. But if we move fast, we can define the future of autonomous freight on our own terms—creating millions of jobs in high-tech logistics, slashing supply chain costs, and making India a true global leader in smart transport.
The question is no longer 'Should India embrace autonomous freight?' but 'Can we afford not to?' The trucks of the future are ready to roll. The only thing left is for India to step on the accelerator. Policymakers, industry leaders, and technology innovators must come together to create an AV roadmap for India's freight corridors. The time for pilots and slow-moving committees is over—we need clear regulations, infrastructure investments, and industry collaboration to make autonomous freight a reality.
If India gets this right, we won't just solve our logistics crisis—we'll set a global benchmark for the future of freight transport. The road ahead is open.
This article is authored by Abhishek M. Chaudhari, research assistant, Belfer Center, Harvard and Sahil Deo, co-founder, CPC Analytics.