The Union Cabinet has approved the establishment of an Integrated Transport and Logistics Authority (ITLA), which will serve as the apex body for integrated transport and logistics planning, research, project appraisal and monitoring, policy support and data analytics. Experts said the authority could strengthen multimodal connectivity, improve resource utilisation and support more efficient movement of goods across India’s transport network.

The authority will focus on aligning projects across transport modes, monitoring implementation and improving investment efficiency. Its responsibilities are also expected to include coordinating planning among road, rail and port networks, identifying infrastructure bottlenecks and supporting more effective execution across ministries and states.

Kushal Kumar Singh, Partner at Deloitte India, said integrated planning would be important for improving connectivity and resource use as India works to lower logistics costs as a share of gross domestic product. He added that the main challenge would be converting the planning framework into coordinated action across the different parts of the transport system.

Suryansh Jalan, Chief Business Officer at FarEye, said the authority could help reduce the time goods spend waiting in the logistics network, thereby limiting the amount of working capital tied up during transit and storage. He said its value would depend on how effectively it connects infrastructure, freight data and decision-making, allowing policymakers to determine investment priorities and address bottlenecks.

Better coordination could also help businesses decide when to dispatch goods, which transport mode to use and how to respond to disruptions. Experts said greater predictability could reduce the need for buffer inventory, shorten waiting times, improve asset utilisation and make delivery commitments more reliable. For smaller businesses, releasing cash held in inventory could provide additional room for expansion, while stronger planning could improve the broader competitiveness of India’s transport and logistics ecosystem.