India’s logistics cost will come down to single-digit percentage in two years: Gadkari

Nitin Gadkari aims to reduce India's logistics cost to 9% by constructing highways and promoting alternative fuels.

Union Road Transport and Highways Minister Nitin Gadkari on Thursday (October 17, 2024) said India's logistics cost will come down to single digits within the next two years.

Addressing an event organised by NITI Aayog, Mr. Gadkari said the Ministry is constructing several highways and expressways, which will help reduce India's logistics cost.

"Within two years, we are going to reduce our logistics cost to 9%," he added.

According to quick estimates of the economic think tank National Council of Applied Economic Research (NCAER), logistics costs in India ranged between 7.8% to 8.9% of GDP for the fiscal 2021-22.

The Economic Survey 2022-23 pointed out that logistics costs in India have been in the range of 14-18% of GDP against the global benchmark of 8%.

Also read: India’s logistics cost will reduce to single-digit in 5 years: Gadkari

Mr. Gadkari said there is huge potential for India to export alternative fuels and biofuels. He also pointed out that low-quality coal is useful for making methanol.