Union Road Transport and Highways Minister Nitin Gadkari stated on Thursday that India's logistics costs are expected to decrease to single digits within the next two years.
Union Minister Nitin Gadkari | File | Free Press Journal
India's Logistics Costs Set to Decrease
Speaking at a NITI Aayog event, Gadkari announced that the ministry is developing multiple highways and expressways, aimed at lowering India's logistics costs.
As per preliminary estimates from the National Council of Applied Economic Research (NCAER), logistics costs in India accounted for 7.8 to 8.9 percent of the GDP during the 2021-22 fiscal year.
Gadkari emphasized India's vast potential to export alternative fuels and biofuels. He also noted that low-grade coal can be effectively used to produce methanol.
The minister highlighted India's rapid progress in the biofuel sector, particularly in methanol production.
Gadkari further expressed his ambition to make India the top automobile industry globally. He mentioned that India surpassed Japan last year to become the world's third-largest automobile market, trailing only the US and China.
He pointed out that the size of India's automobile industry has grown from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024, making it one of the largest job-generating sectors.
Gadkari also stressed the use of recycled materials, such as tyre powder and plastic, in road construction, which contributes to reducing the import of bitumen.
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"Within two years, we are going to reduce our logistics cost to 9 per cent," he added.
Focus on Stubble Burning
He also highlighted how the initiative to utilize crop waste is boosting farmers' incomes nationwide.
Gadkari addressed the stubble-burning issue in Punjab and Haryana.
The minister stated that India must adopt a policy that is cost-effective, locally sourced, reduces imports, and generates employment to tackle the key challenges of increasing pollution and fossil fuel imports.
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He said that right now, "we can process one-fifth of the Parali, but with better planning, we can reduce the seasonal air pollution from stubble-burning by using parali as raw material for alternative fuels."
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