India's Strategic Review to Boost Export Logistics and Reduce Costs

The Union government has released a detailed review of measures taken to ease logistics and reduce trade transaction costs for Indian exporters, underlining a multi-year effort to simplify procedures, digitise documentation, and improve physical connectivity across ports, airports, and borders. The review consolidates policy steps led primarily by the Department of Commerce and the Department for Promotion of Industry and Internal Trade (DPIIT), alongside interventions by line ministries responsible for infrastructure, customs systems, and trade facilitation.

The exercise comes at a time when export performance and cost competitiveness are closely tied to the efficiency of logistics and the burden of compliance on firms, especially micro, small and medium enterprises (MSMEs). By formally reviewing progress, the government is seeking to map how far earlier commitments on trade facilitation have translated into operational changes on the ground, and where further rationalisation is required.

Background: Focus on Logistics and Trade Costs

Over the last several years, logistics reform and reduction of trade-related transaction costs have been pursued through a combination of national policies and targeted schemes. These include the National Logistics Policy, sectoral production-linked incentive (PLI) schemes with embedded export objectives, the logistics and export infrastructure components of the PM Gati Shakti approach, and district-level export promotion initiatives such as the District as Export Hub (DEH) programme.

According to the Department of Commerce’s latest year-end review, export growth during 2025 has been supported by a mix of product-specific and system-level measures, including improved port connectivity, faster clearances, and simplified procedures for exporters in sectors such as electronics, engineering goods, pharmaceuticals and marine products.[3] These sectoral gains have spurred further scrutiny of the structural costs exporters face in moving goods from factory to foreign buyer.

In parallel, the DPIIT has been overseeing initiatives such as One District One Product (ODOP) and DEH, which link local production clusters to global markets and depend heavily on efficient logistics and lean documentation frameworks.[2] The new review situates the easing of logistics and reduction of transaction costs within this broader ecosystem of trade and industrial policy.

Scope of the Government’s Review

The review on easing logistics and reducing transaction costs for exporters covers three main dimensions:

• Regulatory and procedural simplification for export clearances and documentation.
• Digital and systems-based improvements across customs, trade portals, and inter-agency coordination.
• Physical logistics and connectivity measures that affect the time and cost of moving export consignments.

The Department of Commerce has consolidated information from export promotion councils, line ministries, customs authorities, and state governments to assess the operational impact of these changes.[3] The review also builds on inputs received through formal consultations with states and districts under the DEH framework, where local authorities are tasked with identifying bottlenecks that impede export-oriented units.[2]

Key Procedural and Regulatory Measures

A central plank of the effort to reduce transaction costs has been the rationalisation and simplification of procedures that exporters must follow. The review notes several strands of work in this area:

Simplifying Export Documentation

Exporters have traditionally been required to submit multiple physical and digital documents across agencies such as customs, port authorities, shipping lines, banks, and certification bodies. The review highlights the consolidation of documentation requirements through single-window mechanisms and reforms that minimise repetitive data entry.

As part of this direction, the Department of Commerce has progressively encouraged use of electronic documentation and standardised data formats so that information entered once can be reused across multiple steps of the export process.[3] This is aligned with India’s broader trade facilitation commitments at the World Trade Organization, which emphasise transparency, predictability, and paperless trade.

Reduction of Compliance Burden

The government has also undertaken periodic exercises to identify redundant or overlapping compliance requirements in export operations. These include rationalisation of certain licensing conditions, consolidation of returns, and alignment of classification codes and descriptions across customs and allied agencies.

According to information shared in Parliament on related trade facilitation efforts, export-oriented schemes and sectoral policies have been reviewed to remove outdated conditions and to better harmonise with digital customs systems and the Foreign Trade Policy framework.[3] While the review does not change statutory requirements, it seeks to ensure that compliance steps are clearly defined, time-bound, and capable of being completed online wherever feasible.

District-Level Streamlining under DEH

Under the District as Export Hub initiative, district export promotion committees have been set up in all states and union territories to identify products and services with export potential and to address local bottlenecks.[2] The review notes that these committees are expected to flag procedural issues faced by exporters at the district level, including local approvals, logistics linkages to ports, and access to certification or testing facilities.

This bottom-up feedback mechanism is intended to complement national-level process reforms. By mapping how district-level exporters interact with banks, customs brokers, and logistics providers, authorities can refine guidelines to minimise unnecessary steps and reduce transaction time and costs.

Digital and Systemic Improvements

The review highlights a series of digital interventions that directly affect trade transaction costs by shortening clearance times and reducing manual processing.

Integration of Digital Platforms

Customs and trade systems have been progressively integrated into a more seamless digital environment. Core platforms such as electronic data interchange systems, port community systems, and trade information portals are being interconnected to reduce duplication and ensure that data flows smoothly from exporters to regulators and logistics providers.

In its year-end communication, the Department of Commerce attributes part of the export performance in 2025 to improvements in trade-related digital infrastructure, including faster processing of shipping bills and greater reliance on risk-based inspection.[3] This shift reduces physical examinations for low-risk consignments, thereby cutting both time and cost for compliant exporters.

Support for Smaller Exporters and New Entrants

Digital trade facilitation measures are particularly significant for smaller firms and first-time exporters, who often face steep learning curves in understanding documentation and regulatory processes. Initiatives linked to ODOP and DEH have combined product promotion with guidance on using digital platforms for export documentation and market access.[2]

Capacity-building efforts include training sessions conducted with export promotion councils, industry associations, and state-level agencies to familiarise businesses with electronic filing, online certificates of origin, and other paperless processes. By demystifying these steps and making them less resource-intensive, the government aims to lower the effective transaction cost per shipment, especially for MSMEs operating at lower volumes.

Physical Logistics and Connectivity Measures

Transaction costs for exporters are also influenced by the physical movement of goods, from manufacturing centres to ports and onward to international markets. The review connects existing logistics infrastructure initiatives with their effect on export competitiveness.

Linkages with National Logistics and Industrial Policies

The government has been implementing a range of logistics upgrades through dedicated infrastructure corridors, integrated logistics parks, and port modernisation programmes. These efforts are supported by policy frameworks that emphasise multimodal connectivity, better last-mile access to ports, and reduction of dwell time for cargo.

The Department of Commerce’s review underlines how these infrastructure interventions reinforce export performance in key sectors by providing more reliable and cost-effective transport options, thereby complementing procedural and digital reforms.[3] Where sectoral PLI schemes have catalysed new manufacturing investment, improved logistics efficiency becomes a critical enabler of sustained export growth.[4]

District Export Hubs and Local Logistics

At the district level, the DEH initiative links local production clusters to national and global supply chains. States and districts, working with the Directorate General of Foreign Trade, identify priority products and then consider logistics requirements such as storage, aggregation, and connectivity to ports or airports.[2]

The new review notes that aligning district export action plans with broader logistics initiatives is essential for lowering transaction costs. When aggregation centres, testing facilities, and common logistics services are developed close to production clusters, exporters can reduce costs related to fragmented shipments, repeated handling, and long-distance movement for basic formalities.

Impact on Exporters and Trade Ecosystem

The government’s review places particular emphasis on how the combined effect of procedural reforms, digital systems, and infrastructure improvements translates into operational benefits for exporters.

Reduced Time and Uncertainty

Time spent in fulfilling documentation requirements, undergoing inspections, and waiting for clearances is a major component of transaction costs. With expanded use of digital documentation, greater reliance on risk management systems, and clearer timelines for key procedures, exporters have reported reduced uncertainty in planning shipments.

The Department of Commerce’s year-end assessment points to improvements in export processing times at ports and airports, which contribute to better predictability of delivery schedules for international buyers.[3] Such predictability is particularly important in high-value sectors such as electronics and pharmaceuticals, where just-in-time supply chains and regulatory compliance are stringent.

Lower Administrative and Compliance Costs

By rationalising documentation requirements and enabling online submissions, exporters are able to spend less on manual processing, couriering of physical documents, and repeated visits to offices. While the scale of savings varies by sector and firm size, the cumulative reduction in small, recurring expenses contributes to improved overall competitiveness.

Initiatives under ODOP and DEH that integrate capacity building on digital systems further reduce dependence on intermediaries for routine filings, particularly among smaller exporters.[2] Over time, this can lead to a structural shift where more firms handle their own documentation, reserving external support for specialised matters rather than routine compliance.

Greater Inclusion of Smaller and Rural Producers

The integration of export-oriented initiatives with district-level planning allows producers in smaller towns and rural areas to tap into global markets more effectively. ODOP, for example, identifies unique products from each district and supports them through branding, exhibition participation, and digital marketplace onboarding.[2]

When combined with efforts to ease logistics and reduce transaction costs, these measures help artisans, farmer-producer organisations, and small manufacturers participate in export value chains without facing disproportionately higher costs compared to large firms. Better access to logistics services, documentation support, and predictable procedures is expected to promote a more diversified and geographically broad-based export base.

Quotes and Government Positioning

In its communication on the broader trade facilitation agenda, the government has consistently framed logistics efficiency and transaction cost reduction as core components of export competitiveness and economic growth.

The Department of Commerce has underlined that improving trade facilitation, simplifying procedures, and strengthening logistics are essential for Indian exporters to compete in global markets and to meet the evolving demands of international supply chains.[3]

The DPIIT has emphasised that initiatives such as ODOP and the District as Export Hub programme rely on robust logistics linkages and streamlined procedures to unlock the full export potential of products and services identified at the district level.[2]

These positions are reflected in the current review, which presents easing of logistics and reduction of trade transaction costs as an ongoing, iterative process supported by multiple ministries, states, and industry stakeholders.

Institutional Mechanisms and Coordination

The review also highlights the institutional arrangements put in place to coordinate logistics and trade facilitation measures across administrative levels.

State and District-Level Committees

Under the DEH initiative, State Export Promotion Committees (SEPC) and District Export Promotion Committees (DEPC) have been constituted to guide identification of export-worthy products and address bottlenecks.[2] These committees bring together representatives from state departments, industry, banking, customs, and export promotion agencies to provide coordinated support.

Issues related to local logistics gaps, documentation challenges, and access to common facilities are expected to be escalated through these mechanisms to relevant central authorities. This multi-tiered structure is intended to ensure that national reforms are responsive to ground-level realities.

Engagement with Export Promotion Councils and Industry

Regular interactions with export promotion councils, trade bodies, and sectoral associations form another channel through which the government gathers feedback on transaction costs. Such engagements help identify sector-specific issues, such as particular certification requirements, testing protocols, or documentation norms that may be candidates for simplification.

In the 2025 export review, the Department of Commerce credited sustained engagement with industry as a factor in identifying priority reforms and monitoring their impact.[3] The latest review on logistics and transaction costs builds on this approach by incorporating exporter perspectives into policy adjustments.

Linkages with Other Flagship Economic Initiatives

The review situates the effort to ease logistics and reduce transaction costs within the wider matrix of national economic initiatives.

Alignment with Production-Linked Incentive Schemes

PLI schemes across 14 key sectors have attracted substantial investment and driven incremental production and sales in areas such as electronics, pharmaceuticals, and automotive components.[4] Many of these sectors are export-oriented or have strong export potential, making logistics efficiency and reduced transaction costs important for sustaining competitiveness.

By aligning logistics reforms with the needs of PLI-supported sectors, the government aims to ensure that increased production is matched by the capability to move goods efficiently to global markets. This involves coordinated planning for infrastructure, customs handling capacity, and digital systems that can handle higher trade volumes without proportionate increases in transaction costs.

Support for Sectoral and Regional Export Strategies

The combination of ODOP, DEH, and sector-specific export strategies allows for targeted interventions in both products and geographies. For example, products identified under ODOP from 775 districts span textiles, agriculture, food processing, and handicrafts and are supported through participation in exhibitions, capacity building, and e-commerce onboarding.[2]

When logistics and procedural reforms are calibrated to these products and regions, exporters can benefit from focused improvements such as development of specialised storage facilities, quicker handling for perishable goods, or streamlined certification for traditional and GI-tagged products.

Future Focus Areas Identified in the Review

While the review emphasises the progress made, it also outlines areas where continued work is planned or required.

Deepening Paperless Trade

Further expansion of paperless processes remains a core objective. This includes wider adoption of electronic certificates of origin, harmonisation of data standards across agencies, and greater recognition of digital signatures and electronic records.

As more trading partners develop their own digital trade systems, interoperability and mutual recognition will become important to ensure that exporters do not face duplicative requirements when dealing with foreign customs and regulatory bodies.

Enhancing Inter-Agency Data Sharing

Efficient data sharing among customs, ports, regulatory agencies, and financial institutions can significantly reduce transaction time. The review points to the need for continued investment in secure, integrated platforms that allow real-time exchange of relevant information while maintaining privacy and security standards.

Such systems can support more effective risk management, reduce the need for repetitive verification, and enable faster resolution of queries or discrepancies that currently contribute to delays.

Strengthening Last-Mile Logistics for Export Clusters

For many district-level export clusters, last-mile connectivity remains a critical factor in overall logistics performance. The review highlights the importance of aligning district and state infrastructure plans with export needs, including the development of logistics hubs, aggregation centres, and improved road and rail links to ports and airports.

These interventions are expected to be particularly beneficial for agriculture-based and artisanal products, where production is often dispersed and shipment volumes are smaller, making efficient consolidation and transport arrangements vital for cost-effective exporting.

Administrative and Public Impact

From an administrative standpoint, the review reinforces a shift toward outcome-based monitoring, where the success of trade facilitation measures is judged in terms of time and cost savings for exporters, rather than solely by the number of procedural changes introduced. This implies a continued emphasis on measurable indicators such as average clearance times, documentation counts, and the share of consignments processed digitally.

For the exporting community, especially MSMEs and emerging exporters from non-traditional regions, the cumulative impact of easing logistics and reducing transaction costs can be substantial. Lower administrative burdens improve the viability of smaller shipments, enable more experimentation with new markets, and reduce the working capital tied up in procedural delays.

Citizens indirectly benefit through employment generation, higher utilisation of local skills and resources, and enhanced visibility for district-level products in international markets. Additionally, more efficient logistics and streamlined processes contribute to better utilisation of public infrastructure and can support broader economic resilience by making supply chains more responsive.

The review on easing logistics and reducing trade transaction costs for exporters thus represents both an assessment of current reforms and a guide for future actions. By documenting progress and identifying remaining gaps, it provides a structured basis for continued collaboration between the central government, states, industry, and local stakeholders in strengthening India’s export ecosystem.