India Must Embrace New Technology as AI Could Save Rs 200 billion

23 Feb 2026 CW Team

The EAC-PM member identified automation of terminal operations, predictive maintenance of equipment and optimisation of cargo routing as key areas where AI can deliver savings. Digitisation of documentation and improved data sharing across stakeholders were said to reduce dwell times and transaction costs. Investment in interoperable platforms and real time visibility across supply chains was described as essential. Early pilots were cited as instructive for scaling interventions.

To realise benefits, the member recommended stronger public private partnerships, focused capital expenditure and targeted skilling programmes to prepare the workforce for technology adoption. Regulatory clarity, standards for data governance and incentives for pilot projects were proposed to accelerate deployment. The member indicated that collaboration with global technology providers and domestic start ups could fast track solutions. Funding mechanisms were noted as critical to support transition costs.

The assessment suggested that, beyond direct cost savings, wider adoption of AI could enhance competitiveness of Indian logistics, lower end consumer prices and support export growth. The member urged coordinated action by central and state agencies alongside industry to translate proposals into measurable outcomes. Implementation, the member added, would require sustained monitoring and iterative policy adjustments. The member recommended a phased implementation with measurable milestones and periodic reviews.

An Economic Advisory Council to the Prime Minister (EAC-PM) member has urged India to embrace new technology and said artificial intelligence could save Rs 200 billion (bn) in cargo handling nationwide. The member outlined that adoption of digital systems and advanced analytics in ports, terminals and freight corridors can reduce inefficiencies and operating costs. The intervention stressed that timely policy support would be necessary to unlock such gains. The assessment quantified potential savings across ports, road and rail segments. The EAC-PM member identified automation of terminal operations, predictive maintenance of equipment and optimisation of cargo routing as key areas where AI can deliver savings. Digitisation of documentation and improved data sharing across stakeholders were said to reduce dwell times and transaction costs. Investment in interoperable platforms and real time visibility across supply chains was described as essential. Early pilots were cited as instructive for scaling interventions. To realise benefits, the member recommended stronger public private partnerships, focused capital expenditure and targeted skilling programmes to prepare the workforce for technology adoption. Regulatory clarity, standards for data governance and incentives for pilot projects were proposed to accelerate deployment. The member indicated that collaboration with global technology providers and domestic start ups could fast track solutions. Funding mechanisms were noted as critical to support transition costs. The assessment suggested that, beyond direct cost savings, wider adoption of AI could enhance competitiveness of Indian logistics, lower end consumer prices and support export growth. The member urged coordinated action by central and state agencies alongside industry to translate proposals into measurable outcomes. Implementation, the member added, would require sustained monitoring and iterative policy adjustments. The member recommended a phased implementation with measurable milestones and periodic reviews.

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