March 2025

India ranks fifth in GDP as of 2023 and is also the fastest growing major economy with a projected growth rate of 6.7 percent for the next two financial years, compared to the expected global average of 2.7 percent. At this rate, India is projected to become the third-largest economy by 2030-313. To reach this milestone, there is a need for a strong and efficient logistics ecosystem, as seamless transportation and supply chain networks are critical to sustaining high economic growth. Logistics plays a pivotal role in contributing to a nation’s GDP by facilitating the movement of goods, which is essential for production, trade, and consumption. Trucks, primarily heavy-and-medium-duty, transport nearly 70 percent of India’s total freight. Thus, the importance of trucks to our growing economy cannot be understated.

However, inefficiencies in fleet management are a major stumbling block for the sector. Operational inefficiencies arising from a lack of digitalisation—such as suboptimal route planning, lack of real-time monitoring, unplanned downtime, poor driver accountability, and neglected vehicle maintenance—can cost a fortune. Additionally, challenges like fuel pilferage, inefficient load management, excessive idling, inadequate utilisation of return loads, and traffic congestion further exacerbate these inefficiencies, leading to higher operational costs and reduced profitability. The shortage of long-haul trucking drivers is impacting the sector. As per the experts, truck-to-drivers ratio has fallen from 1:1.3 in 1980s to 1:0.6 today, exacerbating delays and increasing costs for fleet operators.