The Roads & Highways Minister says lower logistics costs will sharply enhance industrial profitability, boost export competitiveness, and elevate India’s global manufacturing position.
India’s logistics cost is set to fall to single digits by December 2025, marking a major milestone in the country’s push for global competitiveness, Union Minister for Road Transport & Highways Nitin Gadkari has affirmed.
Addressing ASSOCHAM’s 105th Annual Conference 2025 on Friday, Gadkari said, “Logistics costs in China stand at around 8 per cent, and in the US and Europe at about 12 per cent. With our infrastructure push, India is well on its way to matching the most efficient economies of the world.”
Citing a joint study by IIM Bangalore, IIT Kanpur, and IIT Chennai, Gadkari noted that India’s logistics cost has already declined from 16 per cent to 11 per cent of GDP, driven by the rapid expansion and modernisation of the national highway network. This improvement brings India closer to parity with competing economies.
He emphasised that lower logistics costs will significantly enhance industrial profitability, export competitiveness, and the global positioning of Indian products.
Praising Prime Minister Narendra Modi’s leadership, Gadkari said India is advancing steadily toward becoming a $5 trillion economy and the world’s third-largest economy, powered by strong contributions from manufacturing (22-24 per cent of GDP), services (52-54 per cent), and agriculture (10-14 per cent). He added that the ongoing logistics transformation aligns with the Prime Minister’s vision of an Aatmanirbhar Bharat, while strengthening both the transport and manufacturing sectors.
Green Highways and Clean Fuels
Emphasising sustainability, Gadkari said green highways form a cornerstone of India’s transport strategy, incorporating recycled materials, solar-powered infrastructure, and energy-efficient technologies. These initiatives aim to reduce carbon emissions while ensuring durable, safe, and climate-resilient highway systems.
He reiterated the government’s focus on alternative fuels such as biofuels, LNG, CNG, green hydrogen, ethanol, and methanol, reaffirming that “hydrogen is the fuel of the future.” He highlighted India’s progress under the National Green Hydrogen Mission, where public-private partnerships are driving innovation in clean transport technologies.
“Biofuels and green hydrogen are central to our strategy for achieving energy independence and creating rural prosperity. India’s clean energy progress reflects not just technological innovation but the conversion of knowledge into wealth.”
Gadkari added that under the National Green Hydrogen Mission, India could bring down the cost of green hydrogen to $1 per kg, paving the way to becoming a future energy exporter.