India to Cut Logistics Costs to Single Digits by 2026: Gadkari
PORTS & SHIPPING

India to Cut Logistics Costs to Single Digits by 2026: Gadkari

Union Road Transport and Highways Minister Nitin Gadkari announced that India’s logistics costs are expected to drop to single digits within the next two years. Speaking at an event hosted by NITI Aayog, Gadkari emphasized the ongoing construction of highways and expressways as key to reducing logistics costs.

"Within two years, we are going to reduce our logistics cost to 9 per cent," he stated.

Currently, logistics costs in India stand between 14-18 per cent of GDP. This is significantly higher than the global benchmark of around 8 per cent. However, the National Council of Applied Economic Research (NCAER) estimated costs between 7.8 per cent to 8.9 per cent for the fiscal year 2021-22.

Gadkari also highlighted India’s progress in biofuels, particularly methanol, and expressed confidence in the nation’s potential to become a major exporter of alternative fuels. Additionally, he underscored the rapid growth of India’s automobile industry, which has expanded from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024, positioning India as the third-largest automobile market globally.

In road construction, Gadkari pointed out the increasing use of sustainable materials like recycled tyre powder and plastic, contributing to a reduction in bitumen imports.

Union Road Transport and Highways Minister Nitin Gadkari announced that India’s logistics costs are expected to drop to single digits within the next two years. Speaking at an event hosted by NITI Aayog, Gadkari emphasized the ongoing construction of highways and expressways as key to reducing logistics costs. Within two years, we are going to reduce our logistics cost to 9 per cent, he stated. Currently, logistics costs in India stand between 14-18 per cent of GDP. This is significantly higher than the global benchmark of around 8 per cent. However, the National Council of Applied Economic Research (NCAER) estimated costs between 7.8 per cent to 8.9 per cent for the fiscal year 2021-22. Gadkari also highlighted India’s progress in biofuels, particularly methanol, and expressed confidence in the nation’s potential to become a major exporter of alternative fuels. Additionally, he underscored the rapid growth of India’s automobile industry, which has expanded from Rs 7.5 lakh crore in 2014 to Rs 18 lakh crore in 2024, positioning India as the third-largest automobile market globally. In road construction, Gadkari pointed out the increasing use of sustainable materials like recycled tyre powder and plastic, contributing to a reduction in bitumen imports.

Next Story
Infrastructure Transport

CPCL crosses $10 million revenue milestone

Chaitanya Projects Consultancy (CPCL), a leading infrastructure and engineering consultancy, has surpassed $10 million in annual revenue for FY 2024–25, marking a five-year compound annual growth rate of 28.2 per cent—well above the industry average. Established in 2004, CPCL has delivered over 300 projects across highways, bridges, urban infrastructure, water, transport, and environmental sectors. Its achievements include over 600 km of six-lane highways, 2,000 km of national highways, and 100 major bridges. “Our goal has always been to improve India’s infrastructure,” sai..

Next Story
Resources

KPIL secures new orders worth Rs 37.89 billion

Kalpataru Projects International Ltd (KPIL), a major EPC player in power transmission and civil infrastructure, has secured new orders worth approximately Rs 37.89 billion along with its international subsidiaries. The orders include a significant contract in the Buildings and Factories (B&F) segment in India, marking KPIL’s largest B&F order to date. The project involves the development of over 12 million sq ft of residential space with supporting infrastructure, awarded on a design-build basis. Additionally, the company has won new transmission and distribution (T&D) order..

Next Story
Real Estate

Apartment loading rises to 40 per cent in top cities

Driven by rising demand for premium amenities, the average apartment loading across India’s top seven cities has reached 40 per cent in Q1 2025, up from 31 per cent in 2019, according to ANAROCK Research. The loading factor, or the area paid for beyond the usable carpet area, covers common spaces such as lobbies, staircases, and clubhouses. Mumbai Metropolitan Region (MMR) continues to lead with the highest loading at 43 per cent. Bengaluru saw the sharpest jump, from 30 per cent in 2019 to 41 per cent in Q1 2025. Chennai recorded the lowest average loading at 36 per cent. “Sixty..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?