Supply chain is a bridge to connect the producers and customers: in-between many processes have to be carried out. In the present global village, supply chain plays a significant role in trade and commerce. One of the most important factors to determine the success of supply chain is availability of better infrastructural facilities, particularly transport sector. An attempt has been made in this paper to examine the transport sector development in India in the context of supply chain management. The World Bank (2007) estimate of Logistics Performance Index, tells that India stood at 39th rank among 150 countries. It indicates that the country is not in backward position but has to move up the index. Indian transport sector in general has made a significant progress since Independence except in water transport. The existing infrastructure should be overcome in order to strenthen the supply chain management. A few suggestions have been made in this regard.