Nitin Gadkari predicts logistics cost reduction to 9% of GDP by April 2025, boosting exports and job creation.
Union Minister Nitin Gadkari has announced that India’s logistics costs are projected to decrease to below 9% of GDP by April next year, a move that is expected to significantly enhance the country’s export competitiveness. Currently, logistics costs are around 16% of GDP, placing a substantial burden on businesses and the economy.
Speaking at an event, Gadkari highlighted that lowering logistics costs to a single digit will be a key driver for increasing exports. “Our logistics cost now is 16 percent. It will come down to 9 percent by April next year,” he stated, signalling a positive shift for the Indian economy.
The minister’s optimism is supported by recent estimates from the National Council of Applied Economic Research (NCAER), which suggested that India’s logistics costs ranged between 7.8% and 8.9% of GDP in 2021-22. This reduction is anticipated to create a more favourable environment for exports and spur job creation within the country.
Gadkari emphasised the need for the Indian economy to generate more employment opportunities, suggesting that improved logistics efficiency will play a crucial role in achieving this goal. The expected reduction in logistics costs is seen as a vital step towards making India’s economy more competitive on a global scale.
