Union Minister for Road Transport and Highways, Nitin Gadkari, announced that India aims to bring down its logistics costs to 9% of GDP within two years, a significant reduction from the current 14-16%. Speaking at an event in New Delhi, Gadkari highlighted the move as a key step toward enhancing the country’s global competitiveness.
“In China, logistics costs stand at 8%, while in the US and Europe, it is around 12%. Reducing our logistics cost to 9% will make India more competitive in international markets,” Gadkari stated.
The Minister also emphasized the critical role of the automobile industry in India’s economy, noting that it is a major contributor to Goods and Services Tax (GST) revenues for both state and central governments. He stressed the importance of the sector, including construction equipment manufacturing, in achieving the country’s goal of becoming a $5 trillion economy.
Gadkari reaffirmed the government’s commitment to developing world-class infrastructure in key sectors like water, power, transport, and communication. He further outlined the government’s aim to lower construction costs without compromising quality, ensuring sustainable and cost-efficient development.
The announcement underscores India’s focus on bolstering economic growth through improved logistics and infrastructure development.
