India Logistics Cost Down to Single Digits: Gadkari

New Delhi, Apr 8 (PTI) Logistics cost in India has slipped to single digits, helped by the rapid expansion of expressways and economic corridors, Union Minister Nitin Gadkari said on Wednesday.

Addressing the BME Conclave 2026, Gadkari said that 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 per cent from 16 per cent earlier.

"That report came 4-5 months ago. Now, I can say with full confidence that India's logistics cost has come down to 9 per cent...now, India's export market will be more competitive," he said.

The Road Transport and Highways Minister said logistics cost is 12 per cent in the US, 12 per cent in European countries and 8 to 10 per cent in China.

Talking about India's automobile sector, he said, "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).

The minister said there is a need to encourage biofuel and alternative energy, citing the West Asian crisis, which created fuel shortages for many Asian countries.

"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 added.

Noting that Green hydrogen is the fuel of the future, Gadkari said the government has identified 10 highway stretches in different parts of the country for plying green hydrogen-powered trucks to cut vehicular pollution.

He said these stretches will have hydrogen filling stations, set up by Indian Oil and Reliance Petroleum.

The minister said the metal industry is important for the development of the country, and waste metal materials can also be used in road construction.