We aim to cut cost of logistics to 9% of GDP: Nitin Gadkari

By Admin

27 Jun, 2025

India is on a transformational path, aiming to reduce its logistics cost to single digits a move that will significantly enhance competitiveness and economic growth. At the ET Edge SCM Fest 2025, Union Road Transport and Highways Minister Nitin Gadkari emphasized the critical importance of logistics to the national economy and outlined bold initiatives that are reshaping the sector.

From 16% to 10% – And Targeting 9%

Minister Gadkari revealed that India's logistics costs, which once stood at 16% of the GDP, have now dropped to 10% thanks to aggressive government reforms and infrastructure development. “Our target is to bring logistics costs into single digits, around 9% by the end of this year,” he stated. Achieving this milestone will align India more closely with global benchmarks, significantly boosting the country’s export competitiveness and economic resilience.

On-Ground Impact for MSMEs and Exporters

These logistics reforms are more than just numbers they’re directly impacting lives and livelihoods. “Turnaround times at ports are down by 45%, and transport costs have dropped by 25%,” Gadkari shared. For India’s micro, small, and medium enterprises (MSMEs), this is a game-changer, enabling them to compete more effectively on a global scale and expanding opportunities for job seekers and entrepreneurs.

Digital Tolling and Expressway Expansion

One of the major contributors to these improvements has been the widespread implementation of digital toll collection systems. Gadkari noted the transition from manual toll booths to FASTag and the ongoing development of fully digital tolling systems that eliminate the need for stopping. These upgrades reduce fuel waste, lower emissions, cut travel times, and enhance logistics efficiency.

Green Fuel and Energy Independence

Gadkari reiterated the government’s firm stance on adopting sustainable transportation practices. He highlighted India’s growing commitment to clean energy, including ethanol, biofuels, green hydrogen, and electric vehicles (EVs). “India will become a net energy exporter within the next seven years,” he asserted, underlining the government's push for a self-reliant energy ecosystem.

Multimodal Logistics and Strategic Hubs

The integration of different transportation modes is key to further cutting logistics costs. Under the PM Gati Shakti Yojana, the government is building multi-modal logistics hubs in strategic locations such as Jogighopa in Assam, Nagpur in Maharashtra, and Katra in Jammu & Kashmir. These hubs aim to streamline cargo handling and improve freight movement across rail, road, and sea networks.

Connecting Cities Through Expressways

By the end of the year, travel time from Delhi to cities like Dehradun, Jaipur, Chandigarh, and Katra will significantly decrease due to the development of high-speed expressways and economic corridors. Gadkari described these routes as “economic arteries” that will fuel trade and development throughout India.

Driving India’s Automotive Revolution

India’s automobile industry, valued at ₹22 lakh crore, has now become the third-largest in the world, trailing only the US and China. Gadkari emphasized the role of electric vehicles in driving both economic growth and environmental sustainability. “Electric vehicles have vast export potential,” he said. “They are not just part of our Atmanirbhar Bharat vision they are integral to it.”

Conclusion: Building the Future

From expressways and digital tolling to green fuel and multimodal connectivity, the government’s strategic approach is not only reducing logistics costs but also laying the foundation for a stronger, greener, and self-reliant India. “We are not just building infrastructure,” Gadkari concluded. “We are building the future of India to help India become Atmanirbhar.”