India's logistics cost to reduce to single digit by December: Union Minister for Road Transport & Highways, Mr. Nitin Gadkari
- IBEF
- October 21, 2025
Union Minister for Road Transport & Highways, Mr. Nitin Gadkari, stated that India’s logistics cost is set to fall to single digits by December 2025, aided by the rapid expansion of expressways and economic corridors. Citing a report by IIT Chennai, IIT Kanpur, and IIM Bangalore, he noted that logistics costs have already declined from 16% to 10% of GDP, and are expected to reach 9% by year-end, making Indian industry and exports more competitive. For comparison, logistics costs are around 12% in the United States (US) and Europe and 8-10% in China.
In the automobile sector, he highlighted India’s growth from Rs. 14,00,000 crore (US$ 159 billion) to Rs. 22,00,000 crore (US$ 250 billion), with ambitions to become the world’s number one auto industry within five years. The sector currently employs 4,00,000 people and contributes the highest Goods and Services Tax (GST) to the Centre and states. He also emphasised clean energy adoption, noting that India spends Rs. 22,00,000 crore (US$ 250 billion) annually on fossil fuel imports, which adds both economic and environmental burden. In agriculture, he pointed to the bio-ethanol initiative, which increased corn prices from Rs. 1,200 (US$ 13.63) to Rs. 2,800 (US$ 31.80) per quintal, generating an additional Rs. 45,000 crore (US$ 5.11 billion) for farmers in Uttar Pradesh and Bihar. He urged focus on innovation and technology in agriculture, while also highlighting plans to tackle air pollution and use segregated solid waste in road construction by 2027.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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