India achieves logistics cost reduction target of 9% of GDP: Gadkari

By Admin

11 Dec, 2025

India has achieved a major milestone in its economic growth journey by successfully bringing logistics costs down to 9% of GDP, a significant reduction from earlier levels that touched 16%. Union Minister for Road Transport and Highways Nitin Gadkari announced the breakthrough during the Amazon Smbhav Summit, highlighting it as a result of sustained infrastructure development and policy reforms.

Strong Infrastructure Push Driving Cost Efficiency

Gadkari credited the reduction to the rapid expansion of high-quality road infrastructure, which has dramatically improved connectivity across states. A recent joint study by IIM Bangalore, IIT Madras, and IIT Kanpur found that India has achieved a 6% drop in logistics costs, showcasing the direct impact of better roads, smarter planning, and faster freight movement.

With logistics now accounting for 9% of GDP, India is inching closer to global standards — where China stands at 8%, and the US and Europe hover around 12%.

Focus on Clean & Alternative Fuels

The minister also emphasized the need for transitioning India’s transport sector towards cleaner, greener, and more affordable energy sources. He noted that:

• India’s fossil fuel imports have soared to ₹22 lakh crore, demanding urgent corrective measures.
  
  

• The transport sector contributes nearly 40% of urban air pollution, with Delhi being one of the worst affected.
  
  

• While electric mobility is rising, biofuels remain a strategic priority.
  
  

He highlighted the success of innovations like Bajaj’s CNG motorcycle, which reduces fuel expenses to just ₹1 per kilometre, making it an efficient solution for millions of daily commuters.

Technological Breakthroughs Supporting the Transition

Gadkari also shared positive developments from India’s premier research institutions. Students have demonstrated promising aluminium–air battery technology, which could become a cost-effective alternative to lithium-ion systems in the future. This comes at a time when global lithium-ion battery prices have already fallen sharply from $150/kWh to $55–60/kWh, accelerating EV adoption.

Empowering Rural, Agricultural & Tribal Sectors

Addressing Amazon and other major industry leaders, the minister urged deeper engagement with rural, agricultural, and tribal communities. He emphasized the massive untapped potential in these segments to create high-quality, market-ready products that can drive inclusive growth and economic empowerment.