India’s logistics cost will drop to single digits by December this year, primarily due to the rapid expansion of expressways and economic corridors across the country, the Union Minister of Road Transport & Highways Nitin Gadkari said on Friday.
Speaking at the ASSOCHAM Annual Conference 2025, Gadkari mentioned that a recent joint report prepared by IIT Chennai, IIT Kanpur and IIM Bangalore supports this. The report revealed that the construction of expressways and economic corridors has helped reduce the country’s logistics cost to 10% from 16% earlier.
“India’s logistics cost will come down to 9% by December, which will help India become more competitive. I am sure that 100 per cent it is going to give benefit to our industry, our exports will be more competitive,” he said.
This reduction can make India’s exports more competitive, as logistics costs are 12% in the US and European countries, and 8 to 10% in China, PTI reported.
Ambitious goals for the automobile sector
Gadkari set an ambitious target of making India’s automobile industry the number one in the world within five years.
The minister noted that after he took charge as the transport minister, the size of the Indian automobile industry has grown from ₹14 lakh crore to ₹22 lakh crore. The sector currently trails the US automobile industry, which has a size of ₹78 lakh crore, followed by China at ₹47 lakh crore.
Gadkari said the country’s automobile sector provides jobs to 4 lakh youths and is the highest source of GST revenue for the Centre and states.
Tackling fuel imports
The minister highlighted that India’s dependence on fossil fuels has turned out to be an economic burden, as ₹22 lakh crore is spent annually on fuel imports, which is not just an economic burden but also an environmental hazard, leading to pollution.
Talking about air pollution in India, Gadkari said 40% of it, particularly in cities like Delhi, is caused by transport fuel. He called for the widespread adoption of clean energy, which is crucial for the country’s progress, PTI reported.
“We are working in the national interest to reduce the pollution of our country,” he said, adding that it is time for the world, as well as India, to encourage biofuel and alternative fuel.
Furthermore, the minister said that the government has initiated a programme under which it aims to use the entire segregated solid waste in the country in road construction by 2027, thereby creating value from the waste.
Gadkari’s take on boosting GDP growth
Gadkari also urged industry bodies to focus on the agriculture sector, which he deems crucial to boost India’s GDP growth and achieve Aatmanirbhar Bharat (Self-reliant India).
The government’s decision to permit bio-ethanol production from corn has proven beneficial for farmers, as they have earned an additional ₹45,000 crore by producing ethanol from corn. The price of corn has increased from ₹1,200 to ₹2,800 per quintal since the government’s move, PTI reported.
“We have given an additional ₹45,000 crore to farmers of Uttar Pradesh and Bihar, and the reason is that the corn plantation has increased three times in Bihar and Uttar Pradesh. That is going to increase the growth in these states,” the minister said.
He emphasised the need for new technology, innovation and research in agriculture to increase the sector’s growth rate, which is the need of the country. “Without growth in agriculture, we can not make Aatmanirbhar Bharat,” Gadkari said.
