India’s freight movement is undergoing structural expansion across roads, railways, air and sea, driven by changing production patterns and higher trade volumes. Roads continue to dominate domestic freight, while railways are gaining traction for bulk and long-haul cargo. Simultaneously, ports are handling rising trade-linked volumes; and air cargo is growing steadily due to high-value and time-sensitive goods. Further, the PM Gati Shakti National Master Plan integrates rail, road, port and airport infrastructure, with Gati Shakti Cargo Terminals (GCTs) playing a key role in strengthening India’s logistics competitiveness. This broad-based growth is reshaping logistics, driving the need for multimodal integration, and efficiency-focused reforms to lower costs and enhance sustainability.
Road freight movement
Road transport remains the backbone of India’s freight movement, carrying the largest share of about 70 per cent of the total domestic freight due to its extensive network, flexibility and strong last-mile connectivity. With approximately 146,560 km of national highways as of December 2025, India’s extensive road infrastructure, significantly enhances inter regional cargo movement and coverage.
Infrastructure developments are also expanding modal linkages. The opening of India’s largest multimodal cargo terminal at Manesar in June 2025 is enhancing road, rail and port connectivity and streamlining cargo transfers.
Freight movement in Indian Railways
Freight movement in Indian Railways (IR) is undergoing a structural shift from fragmented, mode-specific operations to an integrated, rail-led logistics model. The prevailing challenges in the sector are being addressed through the Gati Shakti Multimodal Cargo Terminal (GCT) Policy, aiming to create modern terminals that seamlessly integrate rail with road, ports and waterways. As of January 2026, IR has approved 306 GCTs, of which 118 are commissioned, adding an estimated handling capacity of 192 million tonnes (mt) per annum.
Rail freight growth is also aligned with cost and sustainability objectives. Rail transport costs less than half of road transport and emits nearly 90 per cent less carbon. Since 2014, an additional 2,672 mt of freight has been shifted to rail, resulting in savings of about 143.3 mt of carbon dioxide emissions. In operational terms, IR has cumulatively reached 1,020 mt of freight between April 2025 and November 19, 2025, reflecting strong multi sector demand.
Dedicated freight corridors (DFCs) are transforming India’s rail freight by offering high-capacity electrified routes exclusively for goods, easing congestion on passenger lines and boosting efficiency. The eastern DFC is fully operational, while 1,404 km of the 1,506 km western DFC has been commissioned as of December 2025. The remaining sections of the western DFC are scheduled for completion by March 2026.
Air freight movements
India’s air cargo sector is experiencing rapid growth, driven by increasing demand for fast, reliable transport of high-value and time-sensitive goods. To capitalise on this growth, as of November 2025, the Ministry of Civil Aviation has urged airlines to add more dedicated freighters, noting the country’s limited fleet of 17 registered freighters compared to global peers. This push aims to boost capacity and reduce transit times, supporting India’s ambitions to become a major air cargo hub. Besides, as per estimates, India’s air cargo throughput is expected to reach 10 million metric tonnes (mmt) by 2030 and 21 mmt by 2047.
Waterways and sea freight
India’s waterways and sea freight sectors are showing strong momentum as key drivers of multimodal freight movement and sustainable logistics growth. During 2024–25, cargo movement on India’s national waterways reached a record 145.5 mt, reflecting a strengthened policy focus and infrastructure expansion. The number of operational waterways has risen significantly, enhancing inland water transport capacity and supporting bulk commodity movements such as coal, iron ore and sand. Sustainability is also emerging as a priority, with initiatives such as the launch of India’s first fully indigenous hydrogen fuel vessel for inland waterways in 2025. Further, under the Maritime Amrit Kaal Vision, India aims to raise the modal share of inland water transport from 2 per cent to 5 per cent, with traffic targeted to exceed 200 mmt by 2030 and 500 mmt by 2047.
Additionally, sea freight connectivity is being strengthened through port-related developments and improved hinterland integration. For example, the planned full commissioning of DFC connectivity to Jawaharlal Nehru Port by March 2026 will boost the efficiency of port logistics, reduce turnaround times and support higher throughput for export and import cargo.
Charting the way forward
As India aims for a $30 trillion economy by 2047, modernising its freight ecosystem is vital to cut costs, support small and medium enterprises and sustain growth. Expanding private participation will accelerate the development of multimodal terminals such as Gati Shakti, while digital integration would enable real-time tracking and predictive analytics for greater efficiency and transparency. Policy reforms such as GST 2.0, introduced in September 2025, have reduced freight-related taxes across different segments, lowering logistics costs. Going forward, coordinated infrastructure, technology and policy support will drive efficient and sustainable freight movement.
