India aims to cut logistics costs to 9% in 3 years, with expressways boosting speed and alternative fuels driving innovation.
Union Minister of Road Transport and Highways Nitin Gadkari announced that India is on track to reduce logistics costs to single-digit levels within the next two to three years. Speaking at an awards ceremony in Mumbai, Gadkari emphasised the critical role of infrastructure in bolstering India’s economic competitiveness, citing ongoing developments in expressways and alternative fuel technologies.
“Currently, logistics costs in India range from 14% to 16% of GDP, compared to 8% in China and 12% in the USA and Europe. With expressways like the Delhi-Mumbai corridor reducing travel time to 12 hours and the Chennai-Bengaluru route to two hours, we are confident logistics costs will drop to 9% in the next two to three years,” Gadkari stated.
The minister also highlighted India’s ambitions to lead globally in alternative and biofuels within the next decade. He stressed the importance of hydrogen as a future fuel, along with innovations in biomass and biodigester technologies for producing hydrogen and CNG.
On the infrastructure front, Gadkari noted that India’s toll revenue, currently at ₹52,000 crore annually, is expected to surge to ₹1.4 lakh crore within two years, thanks to an expanding network of green express highways. “There is no funding issue; every project we undertake is economically viable,” he added, referencing the government’s ₹2.8 lakh crore budget for infrastructure development.
He further acknowledged the importance of innovation and collaboration to tackle challenges in major projects, citing the example of the Worli-Bandra Link project in Mumbai. He reaffirmed the government’s commitment to strengthening sectors like water, power, transport, and communication to drive India’s infrastructure growth under the leadership of Prime Minister Narendra Modi.
With a clear focus on reducing costs, boosting efficiency, and leading in clean fuel adoption, India is positioning itself as a global leader in logistics and sustainable infrastructure.
