The Comptroller and Auditor General of India (CAG) has adopted an integrated audit approach that will examine railways, shipping and road transport together to assess how India’s freight network performs across transport modes. The first reports are expected to be tabled in December 2026 and will cover logistics and ease of doing business, with particular attention to micro, small and medium enterprises (MSMEs) at the state level. Deputy CAG K S Subramanian outlined the approach in New Delhi on 12 November.
What will the integrated logistics audit examine?
The logistics audit will bring evidence from the railways, shipping and road transport departments into a single assessment. Subramanian used the example of freight moving by road and rail to explain the change. Examining the two modes together gives auditors a view of how freight is distributed across the transport network and how decisions in one department affect outcomes elsewhere.
For shippers, a cargo movement can involve road haulage from a factory, a rail leg from an inland terminal and transfer to a vessel at the port. A cross-departmental audit can examine how those links work together and where responsibility for a delay or capacity constraint lies. The November briefing identified the transport modes in scope. It gave no list of ports, freight corridors or terminals selected for review.
How does the audit fit into India’s logistics reforms?
The audit comes as the government pursues two complementary logistics programmes. The PM GatiShakti National Master Plan focuses on coordinating infrastructure development across ministries and states, including the road, rail and port connections that carry freight. The National Logistics Policy, launched in September 2022, focuses on improving logistics services through simpler processes, digital systems and regulatory coordination. It introduced the Unified Logistics Interface Platform (ULIP) to bring together data from different departments.
What will the ease-of-doing-business audit cover?
The CAG began consulting on its nationwide MSME audit in January 2026. The audit covers the period from 2021–22 to 2025–26, with fieldwork scheduled under the 2026–27 audit plan. Its remit includes relevant central ministries, state departments, district-level institutions and state public sector undertakings. The Office of the Principal Accountant General (Audit-II), West Bengal, is coordinating the exercise with participation from state audit offices.
The audit seeks to establish whether reforms to simplify procedures and reduce compliance burdens are improving the experience of smaller businesses. At the January consultation, industry representatives and other participants raised issues including compliance costs, access to finance and markets, infrastructure readiness and grievance handling. These were issues raised during consultation. The audit findings are expected with the reports.
FAQs
When are the first integrated CAG audit reports expected?
The first reports are expected to be tabled in December 2026. The November briefing gave no specific tabling date.
Which transport modes will the logistics audit cover?
The audit will examine railways, shipping and road transport together to assess freight performance across departments.
What period does the MSME audit cover?
The nationwide ease-of-doing-business audit covers five financial years, from 2021–22 to 2025–26.
Join our WhatsApp channel for more updates:
Subscribe to our YouTube channel for more updates:
