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

Economic Times

2 days ago

New Delhi: A combination of expressways, economic corridors, digital tolling and green fuel adoption has helped significantly reduce logistics costs in the country, setting the stage for India's next growth phase, road transport and highways minister Nitin Gadkari said on Thursday.Addressing the ET Edge SCM Fest 2025, Gadkari emphasised the pivotal role of logistics in the country's economic trajectory and that logistics costs have already come down to 10% of GDP from 16%. "Our target is to bring logistics costs into single digits, around 9% by the end of this year," he said. According to Gadkari, logistics cost reductions aren't just macroeconomic indicators. They translate directly into on-the-ground benefits for exporters, small businesses, and job seekers. "Turnaround times at ports are down by 45%, and transport costs have dropped by 25%. This is especially transformative for our MSMEs, who now face fewer barriers to competing globally," he said.
Highlighting the government's continued investments in modern infrastructure, Gadkari said his ministry has moved from manual toll booths to FASTag. "Now, we're building digital tolling systems that eliminate the need for physical stops altogether," he said. "This not only reduces fuel waste but also cuts travel time and improves efficiency across the board." Reiterating India's decisive shift towards clean energy in transportation and logistics, the minister reaffirmed the government's commitment to reducing dependence on fossil fuels. "India will become a net energy exporter within the next seven years, driven by ethanol, biofuels, green hydrogen, and electric mobility," he said.
Elaborating on the multimodal connectivity, Gadkari said the government is actively working to align national highways with port infrastructure, ensuring seamless connectivity while also building multi-modal logistics hubs in places like Jogighopa in Assam, Nagpur in Maharashtra, and Katra in Jammu and Kashmir under the PM Gati Shakti Yojana.
"This will drastically reduce cargo handling times and improve freight movement across rail, road, and sea," he added. Talking about the reduced travel time between important cities due to development of high-speed corridors and expressways, Gadkari said by December this year, the travel time from Delhi to major cities such as Dehradun, Jaipur, Chandigarh, and Katra will reduce significantly. "These are not just roads. They are economic arteries that will carry the lifeblood of trade and development across the nation," he said. Highlighting India's rise as a global automobile leader, Gadkari said the industry is now valued at ₹22 lakh crore, ranking third in the world, behind only the US and China. "Electric vehicles have vast potential for export. They're not just part of our Atmanirbhar Bharat vision, they are integral to our economic and environmental strategy," he said. "We are not just building infrastructure, we are building the future of India to help India become Atmanirbhar," the minister said.