India's logistics costs will drop to single digits within the next five years, Union Road Transport and Highways Minister Nitin Gadkari said on Thursday.
Speaking at the 'Deloitte Government Summit' in New Delhi, Gadkari noted that ongoing construction of highways and expressways by his ministry will contribute to the reduction of logistics costs. "I am confident that within five years, our logistics cost will be in single digits," he stated.
However, estimates from the National Council of Applied Economic Research (NCAER) indicate that India's logistics cost ranged between 7.8% and 8.9% of GDP in 2021-22.
Gadkari also highlighted his goal to make India the world’s leading automobile industry. In 2022, India surpassed Japan to become the third-largest automobile market, trailing only the US and China. The size of India’s automobile industry, he said, has grown from Rs 7.5 lakh crore in 2014 to Rs 22 lakh crore in 2024.
Speaking on India’s macroeconomic position, Gadkari described India as the fastest-growing major economy globally. He added, "If we can increase the purchasing power of farmers, it will have a big positive impact on our economy."
Gadkari also stressed the need to increase exports and reduce imports, noting that "smart villages, like smart cities, are also economically viable."
He further opined that performance audits should be prioritised over financial audits in organisations.
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