India Must Invest in Indigenous Cold Chain Tech to Safeguard Supply Chains: FICCI Grant Thornton Report

Image Source: Press Release

India must accelerate the development of indigenous robotics, sensors, and artificial intelligence tools tailored to local conditions to reduce reliance on imported cold-chain technologies. This key recommendation comes from a new knowledge report released by FICCI and Grant Thornton Bharat at the third edition of the FICCI Gatishakti Summit. The report, Transforming India’s Logistics Ecosystem: Warehousing, Cold Chain and Role of Technology, highlights the urgent need for a shift from infrastructure expansion to system efficiency and technological integration.

From Capacity Creation to System Efficiency

While India has made notable progress in reducing logistics costs—from 13–14% of GDP to approximately 7.9%—the report emphasizes that the next phase of growth depends on improving system effectiveness. To achieve this, it recommends establishing a national R&D centre for cold-chain automation. Such a move would not only strengthen domestic capabilities but also reduce dependence on global technology supply chains.

Infrastructure Growth, Yet Persistent Losses

India currently operates 8,815 cold storage facilities with a combined capacity of 402.18 lakh metric tonnes. However, post-harvest losses in fruits and vegetables remain high, ranging between 6% and 15%. The report attributes these losses not just to infrastructure gaps but also to limited automation, fragmented supply-chain planning, and insufficient integration of intelligent systems across storage and transport networks. Therefore, developing indigenous technology could lower capital costs, improve energy efficiency, and enhance overall supply chain resilience.

Policy Support and Digital Integration Gains Momentum

Industry leaders and policymakers at the summit reinforced the need for innovation-led growth. Anita Praveen, Chairperson of the Warehousing Development and Regulatory Authority, highlighted India’s electronic negotiable warehousing receipt system as a key enabler for expanding storage capacity through private participation. She emphasized that farmers can leverage warehouse receipts to access financing, thereby avoiding distress sales. Moreover, she noted that India’s logistics ecosystem is at an inflection point, with infrastructure, digital tools, and policy frameworks increasingly aligned.

Logistics Infrastructure Set for Rapid Expansion

Anshuman Singh, Co-Chair of the FICCI Committee on Logistics and CEO of IndoSpace, placed the R&D push within the context of rapid infrastructure growth. India currently has around 500 million square feet of logistics parks, including 250 million square feet of Grade-A organized space. Looking ahead, this capacity is expected to double to over 1,000 million square feet in the next five years. Key drivers include initiatives such as the PM Gati Shakti, the National Logistics Policy, and the Multimodal Logistics Parks program. Additionally, the government’s ₹33,660 crore Bhavya Yojana aims to develop 100 plug-and-play logistics parks through public-private partnerships, further accelerating infrastructure development.

Integration and Efficiency: The Next Frontier

Pankaj Kumar, Joint Secretary at the Department for Promotion of Industry and Internal Trade, pointed out that while reducing logistics costs is important, efficiency must also include resilience, sustainability, and stakeholder outcomes. He stressed that integration remains a critical gap. In this context, he urged industry stakeholders to utilize the PM Gati Shakti portal as a comprehensive planning tool for integrated infrastructure, rather than viewing it merely as a GIS platform.

Last-Mile Challenges and Data-Driven Transformation

Pali Tripathi, Co-Chair of the FICCI Committee on Logistics and CEO of Taabi Mobility, identified last-mile execution as a persistent bottleneck. According to her, the sector must now focus on faster, coordinated action across the logistics ecosystem. She highlighted a crucial shift—from mere data availability to data velocity—and from isolated insights to integrated, real-time decision-making across ports, warehouses, and multimodal transport systems.

Building a Future-Ready Logistics Ecosystem

Rajat Kumar Saini, Managing Director and CEO of the National Industrial Corridor Development Corporation, emphasized that infrastructure investments must go hand-in-hand with workforce formalization, regulatory reforms, and skill development. As per the press release, the FICCI–Grant Thornton Bharat report positions indigenous cold-chain automation as essential for building a resilient, efficient, and climate-ready logistics ecosystem. This transformation will be critical for achieving India’s long-term vision of becoming a globally competitive economy under the Viksit Bharat 2047 mission.