Govt Plans to Reduce Logistics Costs to Single Digits in 2-3 Years
WAREHOUSING & LOGISTICS

Govt Plans to Reduce Logistics Costs to Single Digits in 2-3 Years

The Indian government is determined to reduce logistics costs to single-digit levels within the next two to three years, Union Minister of Road Transport and Highways Nitin Gadkari stated recently. Currently, logistics costs in India range between 14-16 per cent. The minister expressed confidence that these costs would drop to nine per cent during this period, significantly boosting the country's economic competitiveness.

To address challenges in the logistics sector, the government has implemented key initiatives such as the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). Speaking at an event in Mumbai, the minister underscored the importance of adopting hydrogen as a major fuel for the future, highlighting the role of biomass and biodigester technologies in producing hydrogen and compressed natural gas (CNG). He further predicted that India would lead the world in alternate and biofuels within the next decade.

Regarding infrastructure development, the minister revealed that India's toll income, currently at Rs 520 billion, is projected to increase to Rs 1.4 trillion within two years. He also mentioned on-going efforts to build green express highways, affirming the financial viability of such projects. He highlighted the government's strong support, including a budget allocation of Rs 2.8 trillion from the Finance Ministry, and emphasized Prime Minister Narendra Modi's prioritisation of infrastructure development in key sectors such as water, power, transport, and communication.

While acknowledging challenges in infrastructure projects, Gadkari stressed the need for innovative strategies and collaboration to overcome obstacles and ensure timely execution. He also shared that India’s goods exports had grown from $48.5 billion in 2000 to $467.5 billion in 2022, while industrial exports increased from $39.6 billion to $317.4 billion during the same period. The government is now targeting $2 trillion in exports of goods and services by 2030.

The Indian government is determined to reduce logistics costs to single-digit levels within the next two to three years, Union Minister of Road Transport and Highways Nitin Gadkari stated recently. Currently, logistics costs in India range between 14-16 per cent. The minister expressed confidence that these costs would drop to nine per cent during this period, significantly boosting the country's economic competitiveness. To address challenges in the logistics sector, the government has implemented key initiatives such as the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). Speaking at an event in Mumbai, the minister underscored the importance of adopting hydrogen as a major fuel for the future, highlighting the role of biomass and biodigester technologies in producing hydrogen and compressed natural gas (CNG). He further predicted that India would lead the world in alternate and biofuels within the next decade. Regarding infrastructure development, the minister revealed that India's toll income, currently at Rs 520 billion, is projected to increase to Rs 1.4 trillion within two years. He also mentioned on-going efforts to build green express highways, affirming the financial viability of such projects. He highlighted the government's strong support, including a budget allocation of Rs 2.8 trillion from the Finance Ministry, and emphasized Prime Minister Narendra Modi's prioritisation of infrastructure development in key sectors such as water, power, transport, and communication. While acknowledging challenges in infrastructure projects, Gadkari stressed the need for innovative strategies and collaboration to overcome obstacles and ensure timely execution. He also shared that India’s goods exports had grown from $48.5 billion in 2000 to $467.5 billion in 2022, while industrial exports increased from $39.6 billion to $317.4 billion during the same period. The government is now targeting $2 trillion in exports of goods and services by 2030.

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?