Govt Touts Last-Mile Delivery as Global Edge

- The push for global market access includes recently finalized Free Trade Agreements with the 27-nation European Union and the 4-nation EFTA bloc (Switzerland, Norway, Iceland, Liechtenstein), giving Indian goods zero-duty access in many cases. - Government initiatives like the National Logistics Policy (NLP) and PM Gati Shakti aim to reduce logistics costs, with India's overall logistics cost having already dropped to 7.97% of GDP from earlier estimates of 13-14%. - The Open Network for Digital Commerce (ONDC) is a key government initiative designed to unbundle the e-commerce value chain, allowing sellers to choose their own logistics providers, thereby breaking the dominance of large, vertically integrated platforms. - Last-mile delivery remains the most expensive part of the supply chain in Indian cities, accounting for up to 53% of total logistics costs, driven by urban congestion and address inaccuracies. - Significant infrastructure challenges persist in Tier 2 and Tier 3 cities, including poor road connectivity, a lack of standardized addresses, and a high preference for Cash on Delivery (COD), which complicates logistics operations. - Tier 2 and Tier 3 cities are projected to contribute 50% of India's e-commerce market by 2026, making them a critical focus for logistics and distribution network expansion. - The government is actively promoting the electrification of delivery fleets, with a vision of achieving 100% electric last-mile logistics by 2030, supported by state-level schemes. - To enhance connectivity, the Union Budget 2026-27 proposed seven new high-speed rail corridors and a dedicated east-west freight corridor connecting Dankuni in West Bengal with Surat in Gujarat.