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Govt Plans to Reduce Logistics Costs to Single Digits in 2-3 Years
WAREHOUSING & LOGISTICS

Govt Plans to Reduce Logistics Costs to Single Digits in 2-3 Years

09 Dec 2024 2 Min Read CW Team
The Indian government is determined to reduce logistics costs to single-digit levels within the next two to three years, Union Minister of Road Transport and Highways Nitin Gadkari stated recently. Currently, logistics costs in India range between 14-16 per cent. The minister expressed confidence that these costs would drop to nine per cent during this period, significantly boosting the country's economic competitiveness.

To address challenges in the logistics sector, the government has implemented key initiatives such as the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). Speaking at an event in Mumbai, the minister underscored the importance of adopting hydrogen as a major fuel for the future, highlighting the role of biomass and biodigester technologies in producing hydrogen and compressed natural gas (CNG). He further predicted that India would lead the world in alternate and biofuels within the next decade.

Regarding infrastructure development, the minister revealed that India's toll income, currently at Rs 520 billion, is projected to increase to Rs 1.4 trillion within two years. He also mentioned on-going efforts to build green express highways, affirming the financial viability of such projects. He highlighted the government's strong support, including a budget allocation of Rs 2.8 trillion from the Finance Ministry, and emphasized Prime Minister Narendra Modi's prioritisation of infrastructure development in key sectors such as water, power, transport, and communication.

While acknowledging challenges in infrastructure projects, Gadkari stressed the need for innovative strategies and collaboration to overcome obstacles and ensure timely execution. He also shared that India’s goods exports had grown from $48.5 billion in 2000 to $467.5 billion in 2022, while industrial exports increased from $39.6 billion to $317.4 billion during the same period. The government is now targeting $2 trillion in exports of goods and services by 2030.

The Indian government is determined to reduce logistics costs to single-digit levels within the next two to three years, Union Minister of Road Transport and Highways Nitin Gadkari stated recently. Currently, logistics costs in India range between 14-16 per cent. The minister expressed confidence that these costs would drop to nine per cent during this period, significantly boosting the country's economic competitiveness. To address challenges in the logistics sector, the government has implemented key initiatives such as the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). Speaking at an event in Mumbai, the minister underscored the importance of adopting hydrogen as a major fuel for the future, highlighting the role of biomass and biodigester technologies in producing hydrogen and compressed natural gas (CNG). He further predicted that India would lead the world in alternate and biofuels within the next decade. Regarding infrastructure development, the minister revealed that India's toll income, currently at Rs 520 billion, is projected to increase to Rs 1.4 trillion within two years. He also mentioned on-going efforts to build green express highways, affirming the financial viability of such projects. He highlighted the government's strong support, including a budget allocation of Rs 2.8 trillion from the Finance Ministry, and emphasized Prime Minister Narendra Modi's prioritisation of infrastructure development in key sectors such as water, power, transport, and communication. While acknowledging challenges in infrastructure projects, Gadkari stressed the need for innovative strategies and collaboration to overcome obstacles and ensure timely execution. He also shared that India’s goods exports had grown from $48.5 billion in 2000 to $467.5 billion in 2022, while industrial exports increased from $39.6 billion to $317.4 billion during the same period. The government is now targeting $2 trillion in exports of goods and services by 2030.

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