Govt plans to cut logistics costs to single digit in 2-3 years: Nitin Gadkari

New Delhi: The government aims to cut the logistics costs in the country to single-digit levels in the next two-three years, according to Union Minister of Road Transport and Highways, Nitin Gadkari.

The logistics cost in India is currently 14-16 per cent and “we will reduce the logistics costs as far as speed is concerned. I am sure that within two to three years, the logistics cost will be nine per cent, which would significantly enhance India’s economic competitiveness”, said the minister.

The government has launched several strategic policies to address logistics sector constraints, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP).

Addressing an event in Mumbai, the minister emphasised the need to explore hydrogen as a key fuel source for the future, highlighting the potential of biomass and biodigester technologies to produce hydrogen and CNG.

The minister said the country will also lead the world in alternate and biofuels within the next 10 years.

Currently, the total toll income currently stands at Rs 52,000 crore. Within two years, this income is projected to reach Rs 1.4 lakh crore.

“We are building green express highways and there is no issue regarding funding because every project we undertake is economically viable," Gadkari said at the ‘CNBC-TV18 India Business Leader Awards’ event.

“We also have strong support from the Finance Ministry, with a budget of Rs 2.8 lakh crore. Most importantly, Prime Minister Narendra Modi has prioritised infrastructure development, focusing on sectors such as water, power, transport, and communication,” the minister emphasised.

Addressing challenges in infrastructure development, Gadkari stressed the importance of innovative strategies and collaborative efforts to overcome obstacles and ensure timely execution.

From 2000 to 2022, India’s goods export increased from $48.5 billion to $467.5 billion while industrial exports grew from $39.6 billion to $317.4 billion. The government aims to reach $2 trillion in exports of goods and services by 2030.