Highway Projects to Transform India’s Transportation Landscape
NEW DELHI (Economy India): Union Minister for Road Transport and Highways, Nitin Gadkari, has announced that India’s logistics cost will decline to single digits within the next five years. Speaking at the Deloitte Government Summit, Gadkari emphasized that ongoing highway and expressway construction projects will play a pivotal role in achieving this target.
Reducing Logistics Costs: A Key Priority
Gadkari outlined the government’s goal to make India’s logistics network more efficient by investing in infrastructure development. “I am confident that within five years, we will bring down our logistics cost to a single-digit percentage,” he said.
He stressed that the lower logistics cost would enhance India’s competitiveness in global trade, benefiting industries and consumers alike. Currently, India’s logistics expenses are higher than those of several developed nations, which affects the pricing of goods.
Highways and Expressways to Drive the Change
The minister highlighted the impact of new highways, expressways, and multi-modal corridors on the transportation sector. These projects aim to reduce travel time, fuel consumption, and freight costs.
“Our focus is not only on building roads but also on creating seamless connectivity between major cities, ports, and industrial hubs. This will result in faster and more cost-efficient movement of goods,” Gadkari said.
The government’s ambitious highway programs, including the Bharatmala project, are set to reshape the logistics landscape by providing dedicated freight corridors and improved road infrastructure.
Boosting the Auto Sector: Aiming for Global Leadership
Gadkari also spoke about his vision to elevate India’s automobile industry to the top position in the world. “Our target is to make India the number one automobile hub globally. With improved logistics and infrastructure, we will support the growth of manufacturing and exports,” he said.
He added that better connectivity and efficient supply chains would reduce production costs for automakers, making India a more attractive destination for investment and innovation.
India’s Competitive Edge through Lower Logistics Costs
Gadkari’s remarks align with the government’s broader goal of making India a global manufacturing powerhouse. Lower logistics costs will help businesses become more competitive by reducing the cost of goods and improving their ability to export products efficiently.
India’s logistics cost is currently estimated to be 14-15% of GDP, significantly higher than in countries like Germany or Japan, where it hovers around 8-10%. Reducing this cost to single digits will not only benefit industries but also improve consumer prices across sectors.
Gadkari’s ambitious roadmap reflects the government’s commitment to transform India’s infrastructure and boost its economic performance. By focusing on expressways, highways, and freight corridors, the government aims to reduce operational costs for industries, enhance trade, and position India as a leading player in global supply chains.
(Economy India)
