India’s logistics costs have been successfully cut to 9% of GDP, meeting the government’s target, driven by high-quality road infrastructure expansion.
India has successfully lowered its national logistics expenditure to 9 per cent of Gross Domestic Product (GDP), achieving the government’s long-term objective of reducing costs from a high of 16 per cent.
Union Minister for Road Transport and Highways, Nitin Gadkari, announced this milestone on 11 December 2025 at the Amazon Smbhav Summit.
The sharp decline is attributed to the swift and extensive development of high-quality road infrastructure across the country. A study conducted by prestigious institutes (IIM Bangalore, IIT Madras, and IIT Kanpur) confirmed a 6 per cent reduction in logistics costs, primarily driven by enhanced connectivity.
The minister noted that this achievement brings India closer to global standards, such as China’s 8 per cent, and places it significantly ahead of the US and Europe, where costs hover around 12 per cent of GDP.
In his address, the minister emphasised the urgent necessity to switch to cleaner and alternative fuels. This move is critical to tackling air pollution, with the transport sector accounting for nearly 40 per cent of urban air pollution, and curbing soaring fossil fuel imports, currently valued at ₹22 lakh crore.
While electric vehicles are gaining traction, the government remains committed to promoting biofuels. Gadkari highlighted key advancements, including the reduction in lithium-ion battery prices from $150/kWh to $55–60/kWh, and the successful demonstration of cost-effective aluminium–air battery technology by students.
Finally, he called upon major industry leaders, including Amazon, to increase their involvement with rural, agricultural, and tribal communities, underscoring the substantial untapped potential for producing quality products in these regions.
SOURCE – MARITIME GATEWAY
