Union Minister Nitin Gadkari said on Wednesday that India’s logistics cost has fallen to 9 per cent, aided by the rapid development of expressways and economic corridors. He was speaking at the BME Conclave 2026.
Infrastructure Boost Reduces Costs
Gadkari cited a report by IIT Chennai, IIT Kanpur, and IIM Bangalore, which showed logistics costs had already decreased from 16 per cent to 10 per cent due to the construction of expressways and economic corridors. He stated that the latest data confirms a further drop to 9 per cent, which will make India’s exports more competitive.
Comparison with Other Countries
The minister noted that logistics costs are 12 per cent in the US and Europe, while China’s costs range between 8 and 10 per cent.
Growth in India’s Automobile Industry
Gadkari highlighted the growth of the Indian automobile sector, saying the industry has expanded from Rs 14 lakh crore when he took office to Rs 22 lakh crore today. It employs around 4 lakh youths and contributes the highest GST revenue to the Centre and states.
India’s Position Globally
He compared India’s automobile sector with global leaders, stating that the US industry is worth Rs 78 lakh crore, China Rs 47 lakh crore, and India Rs 22 lakh crore. The goal, he said, is to make India the world’s number one automobile industry.
Focus on Biofuels and Alternative Energy
Referring to fuel shortages caused by the West Asia crisis, Gadkari stressed the importance of promoting biofuels and alternative energy for both economic and environmental reasons.
Green Hydrogen Initiatives
Gadkari said the government has identified 10 highway stretches for green hydrogen-powered trucks to reduce vehicular pollution. Hydrogen filling stations will be set up along these routes by Indian Oil and Reliance Petroleum.
Role of the Metal Industry
He also noted that the metal industry plays a key role in national development, with waste metal materials being used in road construction projects.
