Union minister for road transport and highways Nitin Gadkari said on Friday that India’s logistics cost is set to fall to single digit by December 2025, and called it a milestone in the nation’s pursuit of global competitiveness.
Addressing a session on “Economic Reforms 2.0: Future of Mobility” organised by Assocham, the minister said reduction in logistics costs will significantly enhance industrial profitability, export competitiveness and global positioning of Indian products.
Citing a joint study by IIM Bangalore, IIT Kanpur, and IIT Chennai, he said India’s logistics cost has already declined from 16% to 11% of the Gross Domestic Product, driven by the rapid expansion and modernisation of the national highway network. This improvement bring India at par with some of the competing economies, he added.
“Logistics costs in China stand at around 8%, and in the US and Europe at about 12%. With our infrastructure push, India is well on its way to matching the most efficient economies of the world,” Gadkari said.
Emphasising sustainability, Gadkari said that Green Highways form a cornerstone of India’s sustainable transport vision, incorporating recycled materials, solar-powered infrastructure and energy-efficient technologies. These initiatives not only reduce carbon emissions but also ensure durable, safe and climate-resilient highway systems.
He said the government’s focus would be on alternative fuels such as biofuels, LNG, CNG, green hydrogen, ethanol and methanol, reiterating that “hydrogen is the fuel of the future.” He noted India’s progress under the National Green Hydrogen Mission, where public–private partnerships are driving research and innovation in clean transport technologies.
With the Green Hydrogen Mission, the minister said, the cost of the fuel will reduce to $1 per kg, helping India to become an energy exporter in future.