India is now one of the fastest growing economies in the world, but the logistics infrastructure is drastically inadequate to fulfil the demands of Indian business. The government has therefore tripled its spending on logistics infrastructure from $ 10bn in 2003 to $ 30 bn in 2010. Despite this increase, some commentators say that the road, rail and waterway networks will not be adequate to meet the country’s transport needs, as freight movements will triple in the next decade. It is important to re-design the logistics network to ensure that 45 per cent of freight traffic is carried by the railways by 2010.