India's Logistics Revolution: Slashing Costs and Fueling Growth

Union Road Transport and Highways Minister Nitin Gadkari announced plans to reduce India's logistics costs to single digits within two years. He highlighted advancements in highway construction, alternative fuel export potentials, and innovations in auto industry and road construction to boost economic growth and employment.

Union Road Transport and Highways Minister Nitin Gadkari on Thursday revealed ambitious plans to cut India's logistics costs to single digits by 2025.

Speaking at a NITI Aayog event, Gadkari credited the development of new highways and expressways as crucial steps toward reducing logistics expenses. Economic estimates from the National Council of Applied Economic Research report that logistics costs were between 7.8% and 8.9% of GDP in the 2021-22 fiscal year.

Gadkari also highlighted potential in exporting alternative fuels and biofuels, stating that the country's strides in methanol production and other innovative solutions like recycled materials for road construction are pivotal in propelling India to the forefront of global industries, notably aiming for the top spot in the automobile market.

(With inputs from agencies.)