Union Minister for Road Transport and Highways Nitin Gadkari has declared that India has slashed logistics costs by 6%, a milestone he called “critical to building a $5 trillion, future-ready economy.” Speaking at the ET Edge Supply Chain Management Fest 2025 in New Delhi, Gadkari outlined the government’s multi-pronged strategy to transform India into a global logistics powerhouse.
🚚 Logistics Cost Down from 16% to 10% of GDP
Gadkari revealed that India’s logistics cost—once as high as 16% of GDP—has now dropped to 10%, with a target of 9% by year-end.
“This is not just about percentages—it’s about real impact on GDP, exports, MSMEs, and job creation,” he said.
🛣️ Infrastructure & Innovation Driving the Shift
Key initiatives contributing to the cost reduction include:
- Expressways and Economic Corridors: Faster cargo movement and reduced travel times
- Digital Tolling: Transition from manual booths to FASTag and automated toll systems
- Multimodal Logistics Hubs: Under PM Gati Shakti, hubs in Katra, Assam, and Maharashtra are streamlining freight movement
- Port Connectivity: Turnaround times at ports down by 45%, transport costs down by 25%, benefiting MSMEs
⚡ Clean Energy & Hydrogen Highways
Gadkari emphasized the role of alternative fuels in reducing logistics inefficiencies:
- ₹600 crore pilot project for hydrogen fueling infrastructure across 10 highways
- Launch of CNG motorcycles and electric trucks to cut fuel costs and emissions
- Push for ethanol, biofuels, and green hydrogen to make India a net energy exporter within 7 years
📈 Strategic Vision for a Future-Ready India
Gadkari urged stakeholders to embrace:
- Multimodal connectivity
- Green supply chains
- Inclusive infrastructure development
“We’re not just building roads—we’re building the future of India,” he concluded.
🔁 Why It Matters
India’s logistics transformation is not only improving ease of doing business, but also positioning the country as a resilient, competitive player in global supply chains—a cornerstone of its $5 trillion economy ambition.
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