Union Road Transport and Highways Minister Nitin Gadkari announced that India’s logistics costs are set to decrease to a single-digit figure within the next two years. Speaking at a NITI Aayog event, he emphasized that the ongoing construction of highways and expressways would contribute to lowering logistics costs to 9%. According to the National Council of Applied Economic Research (NCAER), logistics costs in India were estimated to be between 7.8% and 8.9% of GDP for the 2022-23 fiscal year.
Gadkari also highlighted India’s potential to export alternative fuels and biofuels, particularly focusing on the role of low-quality coal in methanol production. He expressed his ambition to make India’s automobile industry the largest in the world, noting that India has already surpassed Japan to become the third-largest automobile market, following the US and China. The industry has expanded significantly, growing from US$ 89.25 billion in 2014 to US$ 214.21 billion in 2024, while also contributing greatly to job creation.
Furthermore, Gadkari discussed the incorporation of recycled materials, such as tyre powder and plastic, in road construction, which would help reduce bitumen imports. He also addressed the issue of crop waste by proposing solutions to increase farmers’ incomes and combat stubble burning in Punjab and Haryana, with plans to enhance the processing of parali to reduce seasonal pollution.
