Logistics Costs to Drop to Single Digit in Five Years: Gadkari

 

Union Minister for Road Transport and Highways Nitin Gadkari stated on Thursday that India’s logistics costs will come down to single digits in the next five years. While addressing the 'Delhi Government Summit,' Gadkari mentioned that his ministry is constructing several highways and expressways, which will help reduce logistics costs across India.

He expressed confidence that within five years, India's logistics costs, currently a significant portion of the economy, will drop to single digits. According to the economic think tank National Council of Applied Economic Research (NCAER), India’s logistics costs represented 7.8-8.9% of the Gross Domestic Product (GDP) in 2021-2022.

Reducing Costs Through Infrastructure
Gadkari explained that the ongoing construction of highways and expressways will play a crucial role in reducing logistics costs. He added that if India's agricultural sector becomes more productive, it will positively impact the overall economy.

India to Become a Leader in the Automobile Industry
Gadkari further shared that India's ambition is to become the number one global player in the automobile industry. Last year, India overtook Japan to become the world's third-largest automobile market, trailing only the United States and China. According to him, the size of India's automobile sector, which was ₹7.5 lakh crore in 2014, is expected to reach ₹22 lakh crore by 2024.

Gadkari concluded by emphasizing that India is set to become the world's fastest-growing major economy