‘Logistics cost to fall to single digit by December’

New Delhi: India’s logistics cost is set to fall to single digits by December 2025, supported by rapid expansion of expressways and economic corridors, Union Road Transport and Highways Minister Nitin Gadkari said on Friday.

Speaking at the ASSOCHAM Annual Conference 2025, Gadkari cited a recent report by IIT Chennai, IIT Kanpur, and IIM Bangalore, which found that the logistics cost has already dropped to around 10 per cent of GDP from 16 per cent earlier. “By December, logistics cost will come down to 9 per cent, making Indian exports more competitive,” he said. He noted that logistics costs stand at 12 per cent in the US and Europe, and 8–10 per cent in China, adding that reduced costs will strengthen India’s industrial growth and export potential.

Highlighting progress in the automobile sector, Gadkari said India aims to become the world’s largest automobile market within five years. “When I took charge, the size of the industry was Rs 14 lakh crore. Today, it has grown to Rs 22 lakh crore,” he said, adding that the sector provides employment to four lakh people and is the largest contributor to GST revenues. The US automobile industry is valued at Rs 78 lakh crore, followed by China at Rs 47 lakh crore.

Gadkari emphasized the need to cut dependence on imported fossil fuels, which costs the country Rs 22 lakh crore annually and contributes significantly to air pollution. About 40 per cent of India’s air pollution is caused by transport fuel, he said, underscoring the importance of switching to biofuels and alternative energy sources.

He urged the industry to focus on agriculture-driven growth, noting that allowing ethanol production from corn has significantly boosted farmers’ income. “Farmers have earned Rs 45,000 crore more due to ethanol production from corn, and corn plantation in Bihar and Uttar Pradesh has tripled,” he said. Corn prices have risen from Rs 1,200 to Rs 2,800 per quintal since the bio-ethanol policy was introduced.

“To make India truly Aatmanirbhar, we must bring innovation, research, and technology into agriculture,” Gadkari stressed. The minister also announced a new initiative to use all segregated solid waste in road construction by 2027, turning waste into a resource. “From an economic and environmental point of view, it is time for India to embrace biofuels and sustainable infrastructure,” he said.