Post-1991 liberalisation shifted India's business culture, says logistics expert

India's 1991 liberalisation marked a fundamental shift in business dynamics and corporate culture rather than delivering immediate operational transformation, according to perspectives from the logistics and trading community. The policy opening unlocked new commercial possibilities and altered how enterprises approached their operations, moving away from a regulated, permit-laden system toward a more competitive marketplace.

Logistics infrastructure saw considerable evolution in the three decades following reforms, with modernised supply chains and improved connectivity reshaping how goods move across the country. However, the sector continues to grapple with structural constraints that limit efficiency gains. The trucking industry remains highly fragmented, dominated by small operators and owner-drivers rather than consolidated fleets, creating coordination challenges and pricing volatility.

Infrastructure deficiencies compound these operational hurdles. Despite investments in highways and ports, significant gaps persist in last-mile connectivity, warehousing facilities, and integrated transport networks. Regional disparities in infrastructure development have created bottlenecks that restrict the full realisation of supply chain optimisation.

These persistent constraints underscore the distinction between the cultural and regulatory transformation triggered by liberalisation and the deeper structural reform required to build world-class logistics capabilities. Industry participants argue that addressing fragmentation and infrastructure gaps remains essential for India to fully capitalise on its economic potential and compete globally.