News Brief
Gadkari Says India’s Logistics Cost To Drop To 9 Per Cent In Next Two Years Amid Infrastructure Expansion
Union Road Transport and Highways Minister Nitin Gadkari
Union Road Transport and Highways Minister Nitin Gadkari on Thursday (17 October) said that India's logistics costs will be in the single digits within the next two years.
Addressing an event organized by NITI Aayog, Gadkari said this will be achieved as the ministry is constructing several highways and expressways, which will help reduce logistics costs.
"Within two years, we are going to reduce our logistics cost to 9 per cent," he said.
According to estimates of the economic think tank National Council of Applied Economic Research (NCAER), logistics costs in India ranged between 7.8 per cent to 8.9 per cent of GDP for the fiscal 2021-22.
The Economic Survey 2022-23 highlighted that logistics costs in India are between 14-18 per cent of the GDP, which is significantly higher than the global standard of around 8 per cent.
Gadkari said that he aims to make the Indian Automobile Industry number one in the world.
“Last year, India had overtaken Japan to become the third-largest automobile market in the world, only behind the U.S. and China,” he said.
“The size of India’s automobile industry rose from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024 and this industry is creating a maximum number of jobs,” Gadkari added.
Gadkari further highlighted that materials like recycled tyre powder and plastic are being utilized in road construction, which helps in the reduction of bitumen import.
