India aims to slash logistics costs to single-digit percentage in next 5 years

Union Minister for Road Transport and Highways Mr. Nitin Gadkari announced India’s goal to reduce logistics costs to a single-digit percentage within 5 years. At the 'Deloitte Government Summit,' he highlighted the construction of highways and expressways as key initiatives to achieve this reduction. He expressed confidence that, within 5 years, logistics costs will be in the single-digit range, underscoring the government’s commitment to infrastructural development. The National Council of Applied Economic Research (NCAER) estimates that India’s logistics costs ranged from 7.8% to 8.9% of GDP for the fiscal year 2021-22, and reducing these costs is crucial for enhancing economic efficiency and global competitiveness.

He also shared his vision for India’s automobile industry, which has recently surpassed Japan to become the third-largest global market, with the industry’s value increasing from US$ 89.68 billion (Rs. 7.5 lakh crore) in 2014 to US$ 263.06 billion (Rs. 22 lakh crore) in 2024. He described India as the fastest-growing major economy. He emphasized the importance of increasing farmers' purchasing power to impact economic growth positively. He highlighted the need to boost exports and reduce imports to strengthen the country’s economic position while advocating for 'smart villages' alongside smart cities. He also stressed prioritizing performance audits over financial audits to drive better outcomes and productivity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.