Gadkari Reaffirms India’s $5 Trillion Economy Goal by 2027
ECONOMY & POLICY

Gadkari Reaffirms India’s $5 Trillion Economy Goal by 2027

Union Minister for Road Transport and Highways Nitin Gadkari has reiterated the government’s goal of achieving a USD 5 trillion economy by 2027, under the leadership of Prime Minister Narendra Modi, while also highlighting India’s vision of becoming a developed nation by 2047.

Addressing the 120th Annual Session of the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, Gadkari expressed gratitude to all stakeholders contributing to India’s economic growth and underlined the need for development guided by three pillars — Ethics, Economy, and Ecology/Environment.

He emphasised that ethical values are vital to maintaining a healthy social fabric and called for integrated thinking, coordination, and cooperation across sectors.

Citing the growth of the automobile industry, Gadkari noted that in 2014, India ranked seventh globally with an industry valuation of Rs 14 trillion, but has since overtaken Japan to become the world’s third-largest automobile market, now valued at Rs 22 trillion. He expressed confidence that with innovation and adoption of alternative fuels such as ethanol, methanol, bio-diesel, LNG, electric, and hydrogen, India could emerge as the global leader in automobile manufacturing within five years.

He said the use of such fuels could significantly cut India’s crude oil imports, currently worth Rs 22 trillion annually, and praised the ethanol policy reforms for boosting maize prices, benefiting farmers in Uttar Pradesh and Bihar, and adding around Rs 450 billion to rural incomes. Gadkari said this approach enhances domestic production, employment, and purchasing power, strengthening the overall economy.

He also cited the recent launch of an electric truck battery-swapping facility in Sonipat, calling it more cost-effective than diesel. Electricity costs per kilometre, he said, were far lower, helping reduce logistics costs, which have already declined from 16 per cent of GDP to around 9 per cent, and are expected to fall further.

Highlighting the value of innovation and sustainability, Gadkari said, “No material is waste, and no person is waste.” He mentioned successful projects such as converting sewage sludge in Mathura into bioenergy and using legacy waste for road construction, with over 8 million tonnes of waste already repurposed for infrastructure development.

He urged balanced growth across agriculture, manufacturing, and services, stressing that stronger agriculture and allied sectors are essential for reducing migration and bolstering the rural economy.

Calling infrastructure the backbone of India’s economy, Gadkari noted that every Rs 100 invested in national highways contributes Rs 321 to GDP. He highlighted successful funding models such as Infrastructure Investment Trusts (InvITs) and Toll-Operate-Transfer (TOT) schemes, under which the Ministry has raised significant capital from the market. The first InvIT bond issue, he said, was oversubscribed seven times, demonstrating strong investor confidence.

He also emphasised the need to decentralise wealth, making small investors and workers more prosperous to strengthen the economy’s foundation.

Discussing ongoing infrastructure projects, Gadkari said 25 Greenfield Expressways are under development, connecting major cities and ports. He also cited key initiatives such as the Zojila Tunnel and the Delhi–Katra–Amritsar Expressway, aimed at improving connectivity and reducing travel time. Tourism-focused developments like the Buddhist Circuit and ropeways in Kedarnath, he added, would promote religious tourism and revenue generation through public–private partnerships.

Concluding his address, Gadkari reaffirmed that the government’s vision is to build safe, sustainable, and inclusive infrastructure that drives employment, exports, and national prosperity.

Union Minister for Road Transport and Highways Nitin Gadkari has reiterated the government’s goal of achieving a USD 5 trillion economy by 2027, under the leadership of Prime Minister Narendra Modi, while also highlighting India’s vision of becoming a developed nation by 2047. Addressing the 120th Annual Session of the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, Gadkari expressed gratitude to all stakeholders contributing to India’s economic growth and underlined the need for development guided by three pillars — Ethics, Economy, and Ecology/Environment. He emphasised that ethical values are vital to maintaining a healthy social fabric and called for integrated thinking, coordination, and cooperation across sectors. Citing the growth of the automobile industry, Gadkari noted that in 2014, India ranked seventh globally with an industry valuation of Rs 14 trillion, but has since overtaken Japan to become the world’s third-largest automobile market, now valued at Rs 22 trillion. He expressed confidence that with innovation and adoption of alternative fuels such as ethanol, methanol, bio-diesel, LNG, electric, and hydrogen, India could emerge as the global leader in automobile manufacturing within five years. He said the use of such fuels could significantly cut India’s crude oil imports, currently worth Rs 22 trillion annually, and praised the ethanol policy reforms for boosting maize prices, benefiting farmers in Uttar Pradesh and Bihar, and adding around Rs 450 billion to rural incomes. Gadkari said this approach enhances domestic production, employment, and purchasing power, strengthening the overall economy. He also cited the recent launch of an electric truck battery-swapping facility in Sonipat, calling it more cost-effective than diesel. Electricity costs per kilometre, he said, were far lower, helping reduce logistics costs, which have already declined from 16 per cent of GDP to around 9 per cent, and are expected to fall further. Highlighting the value of innovation and sustainability, Gadkari said, “No material is waste, and no person is waste.” He mentioned successful projects such as converting sewage sludge in Mathura into bioenergy and using legacy waste for road construction, with over 8 million tonnes of waste already repurposed for infrastructure development. He urged balanced growth across agriculture, manufacturing, and services, stressing that stronger agriculture and allied sectors are essential for reducing migration and bolstering the rural economy. Calling infrastructure the backbone of India’s economy, Gadkari noted that every Rs 100 invested in national highways contributes Rs 321 to GDP. He highlighted successful funding models such as Infrastructure Investment Trusts (InvITs) and Toll-Operate-Transfer (TOT) schemes, under which the Ministry has raised significant capital from the market. The first InvIT bond issue, he said, was oversubscribed seven times, demonstrating strong investor confidence. He also emphasised the need to decentralise wealth, making small investors and workers more prosperous to strengthen the economy’s foundation. Discussing ongoing infrastructure projects, Gadkari said 25 Greenfield Expressways are under development, connecting major cities and ports. He also cited key initiatives such as the Zojila Tunnel and the Delhi–Katra–Amritsar Expressway, aimed at improving connectivity and reducing travel time. Tourism-focused developments like the Buddhist Circuit and ropeways in Kedarnath, he added, would promote religious tourism and revenue generation through public–private partnerships. Concluding his address, Gadkari reaffirmed that the government’s vision is to build safe, sustainable, and inclusive infrastructure that drives employment, exports, and national prosperity.

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