Union Road Transport and Highways Minister Nitin Gadkari predicts a significant reduction in India’s logistics costs to single digits within the next five years.
Union Road Transport and Highways Minister Nitin Gadkari announced at the ‘Deloitte Government Summit’ that India’s logistics costs are expected to fall to single digits within the next five years. This reduction will be supported by the construction of new highways and expressways across the country.
Gadkari expressed confidence in achieving this ambitious target, citing ongoing infrastructure projects as key drivers in reducing logistics costs. According to the National Council of Applied Economic Research (NCAER), India’s logistics costs ranged from 7.8 per cent to 8.9 per cent of GDP in 2021-22.
The minister also highlighted his goal of making India’s automobile industry the world’s leading market. India recently surpassed Japan to become the third-largest automobile market globally, trailing only behind the US and China. The industry’s size has surged from INR 7.5 lakh crore in 2014 to Rs 22 lakh crore in 2024.
Discussing India’s broader economic landscape, Gadkari emphasised the nation’s position as the fastest-growing major economy worldwide. He stressed the importance of increasing farmers’ purchasing power to positively impact the economy.
Furthermore, Gadkari advocated for boosting exports and reducing imports while supporting the concept of ‘smart villages’ alongside smart cities. He also underscored the importance of performance audits over financial audits in organisational efficiency.
The minister’s statements reflect a commitment to enhancing India’s economic and infrastructural development, aiming to position the country as a global leader in logistics and automotive sectors.
