Large-scale expansion in the construction of expressways and economic corridors is expected to bring down the logistics cost in India to as low as 9 per cent by December this year, said Union Minister of Road Transport and Highways, Nitin Gadkari, on Friday.
Virtually addressing the ASSOCHAM Annual Conference 2025 in New Delhi, the minister quoted a recent report by IIT Chennai, IIT Kanpur and IIM Bangalore, which revealed that improved infrastructure and expansion of economic corridors had already reduced the country’s logistics cost to 10 per cent from a previous 16 per cent.
This is lower than the logistics cost in the US, which is 12 per cent; China, where it is 8-10 per cent; and even European nations, where the logistics cost is 12 per cent.
“India’s logistics cost will come down to 9 per cent by December, which will help India become more competitive. I am sure that it’s going to benefit our industry, and our exports will be more competitive,” he said.
India’s mission to be fully self-reliant in the coming decade, however, depends on growth in agriculture, said the Union minister.
Urging the industry bodies to concentrate on the agriculture sector, he said “we need to develop new technology, new innovation, and new research in agriculture to increase the agriculture growth rate, which is the need of the country”.
“Without growth in agriculture, we can’t make Aatmanirbhar Bharat,” Gadkari said, adding that agriculture will boost India’s GDP growth.
Highlighting the Centre’s mission to increase production of bio-ethanol from corn, Gadkari said it had not only helped farmers earn an additional ₹45,000 crore by producing ethanol from corn, but also raised the price of corn and brought more area under cultivation of the crop.
“We have given additional ₹45,000 crore to farmers of Uttar Pradesh and Bihar [for production of ethanol from corn]. Now, corn plantation has increased three times in Bihar and Uttar Pradesh. That is going to increase the growth in these states,” the minister said.
Earlier, the price of corn was ₹1,200 per quintal, but it has now increased to ₹2,800 per quintal after the government allowed production of bio-ethanol from corn, he added.
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Talking about India’s growing automobile sector, Gadkari said it will soon progress to No. 1 in the world.
“Within five years, our target is to make India’s automobile industry the No. 1 in the world… When I took charge as transport minister, the size of the Indian automobile industry was ₹14 lakh crore. It is now worth ₹22 lakh crore,” he said.
Currently, size of the US automobile industry is ₹78 lakh crore, followed by China, which is ₹47 lakh crore.
While the automobile sector provides jobs to 4 lakh youths and is the highest GST-paying industry to the Centre and states, the minister said there is a need to ensure the adoption of clean energy for the country’s progress.
India’s dependence on fossil fuels is an economic burden, as ₹22 lakh crore is spent annually on fuel imports, not to mention the fact that it is an environmental hazard, Gadkari said.
Since 40 per cent of air pollution today is due to transport fuel, “it is a big problem for the country, particularly Delhi,” he stated.
“From an economic point of view, from a pollution point of view, it is time for the world, and it is time for India to encourage bio-fuel and alternative fuel,” he noted.
Talking about initiating a programme that aims to “use the entire segregated solid waste in the country in road construction by 2027, thereby creating value from the waste,” he said they are “working in the national interest to reduce the pollution of our country”.
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