Logistic Challenges in India

Due to Trump-era tariffs, many manufacturers are exploring options for their supply chains. India is a low-cost country alternative, however, there are some challenges regarding logistics that need to be reviewed in detail.

Ground transportation accounts for 65% of intra-India cargo movement according to the National Highways Authority of India.  The large network of highway and road systems connecting India are of inconsistent quality, dangerous and prone to persistent traffic delays.  The heavy reliance and demands of the ground transportation infrastructure, especially for long hauls, propel costs higher than in other countries.

Ocean transport for international freight is dominated by Mumbai and Nhava Sheva (JNPT) ports. These ports combined handle 96% of foreign trade and the majority of the maritime commerce for India.  Challenges at these ports include outdated and lack of proper equipment, need for dredging and lack of staff expertise.  Considering the above, the main issue continues to be delivering the cargo to the port in the first place using the outdated rail system and overloaded ground transportation network.

Other challenges include the lack of standardization of truck types, in India there are at least 40, as well as inconsistent fuel prices and the slow adaptation of digital currency. 

These logistics concerns in India can be overcome with careful planning, local expertise and good partners.  Contact Allyn International to incorporate India into your supply chain.

Contributor: Heather Skovron 

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About Allyn International 

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.