India's Logistics Future: Cutting Costs for Global Competitiveness

Union Minister Nitin Gadkari announced plans to reduce India's logistics costs to 9% within two years. This move aims to enhance international market competitiveness. The automobile industry, contributing significantly to GST revenue, plays a crucial role in India's economic growth. Infrastructure development remains a priority.

Union Minister Nitin Gadkari revealed that India aims to slash its logistics costs from the current 14-16% to 9% over the next two years.

Addressing participants at bauma Conexpo India, Gadkari emphasized that lower logistics expenses would enhance India's competitiveness on the international stage, where countries like China have costs near 8%, and the US and Europe stand at 12%.

Highlighting the economic significance, he noted that the automobile industry remains a major GST revenue contributor and is critical for achieving India's vision of a USD 5 trillion economy. Infrastructure projects continue as a government priority, focusing on power, water, transport, and communication development.

(With inputs from agencies.)