India's logistics cost to reduce to single digit by December: Nitin Gadkari

Logistics cost in India will come down to single digit by December this year, helped by rapid expansion of expressways and economic corridors, Union Minister Nitin Gadkari said on Friday.

Addressing ASSOCHAM Annual Conference 2025, Gadkari further said a recent report prepared by IIT Chennai, IIT Kanpur and IIM Bangalore has revealed that India's construction of expressways and economic corridors has helped reduce the country's logistics cost to 10 percent from 16 percent earlier.

"India's logistics cost will come down to 9 percent by December, which will help India become more competitive. I am sure that 100 percent it is going to give benefit to our industry, our exports will be more competitive," he said.

Logistics cost is 12 percent in the US, 12 percent in European countries and 8 to 10 percent in China.

Talking about India's automobile sector, the minister said, "Within five years, our target is to make India's automobile industry the number 1 in the world."

"When I took charge as transport minister, the size of the Indian automobile industry was Rs 14 lakh crore. The size of the Indian automobile industry now is Rs 22 lakh crore," Gadkari added.

He said the automobile sector provides jobs to 4 lakh youths and the highest GST to the Centre and states.

Presently, the size of the US automobile industry is Rs 78 lakh crore, followed by China (Rs 47 lakh crore) and India (Rs 22 lakh crore).

He noted that India's dependence on fossil fuels is an economic burden, as Rs 22 lakh crore is spent annually on fuel imports and is an environmental hazard, making the adoption of clean energy crucial for the country's progress.

The minister said there is a need to focus on agriculture to boost India's GDP growth.

He pointed out that farmers have earned an additional Rs 45,000 crore by producing ethanol from corn after the government permitted the production of bio-ethanol from corn.

Earlier, the price of corn was Rs 1,200 per quintal which increased to Rs 2,800 per quintal after the government allowed production of bio-ethanol from corn.

"We have given additional Rs 45,000 crore to farmers of Uttar Pradesh and Bihar and the reason is now the corn plantation has increased three times in Bihar and Uttar Pradesh. That is going to increase the growth in these states," the minister said.

Gadkari urged industry bodies to concentrate on the agriculture sector.

"We need to develop new technology, new innovation, new research in agriculture to increase the agriculture growth rate, which is the need of the country. Without growth in agriculture, we can not make Aatmanirbhar Bharat," he said.

Talking about air pollution in India, Gadkari said 40 percent of air pollution is due to transport fuel, and it is a big problem for the country, particularly Delhi.

"We are working in the national interest to reduce the pollution of our country," he said.

India imports fossil fuels worth Rs 22 lakh every year, which is causing pollution, the minister added.

"From an economic point of view, from a pollution point of view, it is the time for the world, and it is time for India to encourage bio-fuel and alternative fuel," he noted.

Furthermore, the minister said, "We have initiated a programme under which we aim to use the entire segregated solid waste in the country in road construction by 2027, thereby creating value from the waste."