India to Cut Logistics Costs to Single Digits by 2026: Gadkari
PORTS & SHIPPING

India to Cut Logistics Costs to Single Digits by 2026: Gadkari

Union Road Transport and Highways Minister Nitin Gadkari announced that India’s logistics costs are expected to drop to single digits within the next two years. Speaking at an event hosted by NITI Aayog, Gadkari emphasized the ongoing construction of highways and expressways as key to reducing logistics costs.

"Within two years, we are going to reduce our logistics cost to 9 per cent," he stated.

Currently, logistics costs in India stand between 14-18 per cent of GDP. This is significantly higher than the global benchmark of around 8 per cent. However, the National Council of Applied Economic Research (NCAER) estimated costs between 7.8 per cent to 8.9 per cent for the fiscal year 2021-22.

Gadkari also highlighted India’s progress in biofuels, particularly methanol, and expressed confidence in the nation’s potential to become a major exporter of alternative fuels. Additionally, he underscored the rapid growth of India’s automobile industry, which has expanded from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024, positioning India as the third-largest automobile market globally.

In road construction, Gadkari pointed out the increasing use of sustainable materials like recycled tyre powder and plastic, contributing to a reduction in bitumen imports.

Union Road Transport and Highways Minister Nitin Gadkari announced that India’s logistics costs are expected to drop to single digits within the next two years. Speaking at an event hosted by NITI Aayog, Gadkari emphasized the ongoing construction of highways and expressways as key to reducing logistics costs. Within two years, we are going to reduce our logistics cost to 9 per cent, he stated. Currently, logistics costs in India stand between 14-18 per cent of GDP. This is significantly higher than the global benchmark of around 8 per cent. However, the National Council of Applied Economic Research (NCAER) estimated costs between 7.8 per cent to 8.9 per cent for the fiscal year 2021-22. Gadkari also highlighted India’s progress in biofuels, particularly methanol, and expressed confidence in the nation’s potential to become a major exporter of alternative fuels. Additionally, he underscored the rapid growth of India’s automobile industry, which has expanded from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024, positioning India as the third-largest automobile market globally. In road construction, Gadkari pointed out the increasing use of sustainable materials like recycled tyre powder and plastic, contributing to a reduction in bitumen imports.

Next Story
Infrastructure Urban

What Industry Wants!

The construction industry is gearing up for Budget 2025 with high expectations. As one of India’s key economic drivers, the sector is eagerly anticipating reforms and policies to address pressing challenges such as high input costs, funding gaps, and sustainability demands. Industry leaders across real estate, infrastructure, construction materials, and logistics have shared their wishlists, urging the government to focus on GST rationalization, increased CAPEX, and green initiatives.This year’s budget presents an opportunity for the government to not only tackle existing bottlenecks but a..

Next Story
Infrastructure Urban

Messe Stuttgart, Startup India Tie-Up to Boost Funding

The logistics market in India is poised for significant growth, with a projected revenue of $357.3 billion by 2030. Despite this huge potential, a recent McKinsey & Company report highlights the decline in logistics funding following the pandemic that remains a significant concern. After receiving unprecedented funding of $25.6 billion in 2021, venture capital investment in logistics startups fell sharply to $2.9 billion in 2023—a nearly 90 per cent decrease, marking the lowest since 2015. This pullback from investors is attributed to several factors, including high interest rates, a glo..

Next Story
Infrastructure Transport

JK Tyre Strengthens Road Safety Commitment

Reinforcing its unwavering commitment to road safety, JK Tyre & Industries, a leader in the tyre manufacturing industry, partnered with the Delhi Traffic Police to organise a comprehensive Road Safety Awareness Week. This initiative, held as part of National Road Safety Month (January 1–31, 2025) spearheaded by the Ministry of Road Transport and Highways (MoRTH), aimed to foster responsible driving habits and reduce road accidents. Under the theme ‘Sadak Suraksha Jeevan Raksha,’ the initiative commenced on January 16, 2025, at the Delhi Police Traffic Training Park, BKS. The program feat..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000