India's Logistics Costs to Drop by April

13 Aug 2024 CW Team

Currently, logistics costs in India are around 13-14% of GDP, significantly higher than in many developed countries where these costs are below 10%. High logistics costs in India have been a longstanding issue, impacting the overall cost of goods and services. The government has been focusing on multiple initiatives to address this challenge, including the development of better infrastructure, the implementation of technology-driven solutions, and streamlining regulatory processes.

One of the key drivers behind this anticipated reduction in logistics costs is the extensive improvement in India's transport infrastructure. The government has been investing heavily in building highways, expressways, and multimodal logistics parks, which are expected to significantly reduce transit times and costs. Additionally, the push towards digitisation in logistics, such as the use of GPS tracking, automated warehousing, and integrated supply chain management systems, is likely to contribute to cost efficiency.

The lowering of logistics costs is expected to have a positive impact on various sectors, especially manufacturing and agriculture, which are highly dependent on efficient supply chains. By reducing logistics expenses, these industries can become more competitive in both domestic and international markets. Moreover, the decrease in logistics costs is anticipated to attract more foreign investment into India's industrial and manufacturing sectors, further bolstering economic growth.

In conclusion, the expected reduction in India's logistics costs to below 9% of GDP by April next year represents a significant milestone in the government's efforts to make the country's economy more competitive and efficient. This development, driven by infrastructure improvements and technological advancements, will likely have far-reaching benefits for various sectors and contribute to India's overall economic progress.

India?s logistics costs are set to decrease to below 9% of the Gross Domestic Product (GDP) by April next year, according to Union Minister Nitin Gadkari. This reduction is part of the government's broader efforts to enhance the efficiency of the country's logistics sector, which is crucial for boosting economic growth and making Indian products more competitive globally. Currently, logistics costs in India are around 13-14% of GDP, significantly higher than in many developed countries where these costs are below 10%. High logistics costs in India have been a longstanding issue, impacting the overall cost of goods and services. The government has been focusing on multiple initiatives to address this challenge, including the development of better infrastructure, the implementation of technology-driven solutions, and streamlining regulatory processes. One of the key drivers behind this anticipated reduction in logistics costs is the extensive improvement in India's transport infrastructure. The government has been investing heavily in building highways, expressways, and multimodal logistics parks, which are expected to significantly reduce transit times and costs. Additionally, the push towards digitisation in logistics, such as the use of GPS tracking, automated warehousing, and integrated supply chain management systems, is likely to contribute to cost efficiency. The lowering of logistics costs is expected to have a positive impact on various sectors, especially manufacturing and agriculture, which are highly dependent on efficient supply chains. By reducing logistics expenses, these industries can become more competitive in both domestic and international markets. Moreover, the decrease in logistics costs is anticipated to attract more foreign investment into India's industrial and manufacturing sectors, further bolstering economic growth. In conclusion, the expected reduction in India's logistics costs to below 9% of GDP by April next year represents a significant milestone in the government's efforts to make the country's economy more competitive and efficient. This development, driven by infrastructure improvements and technological advancements, will likely have far-reaching benefits for various sectors and contribute to India's overall economic progress.

Infrastructure Transport

17 Sep 2025

DMRC revives plan for Dwarka–Gurgaon Metro corridor

Nearly a decade after it was shelved, the Delhi Metro Rail Corporation (DMRC) is reconsidering a long-discussed plan to extend the Metro from Dwarka to Gurgaon.The proposed 12-km corridor would run from Yashobhoomi station in Dwarka Sector-25, on the Airport Express Line, to IFFCO Chowk along the Delhi–Jaipur Expressway. Planned stations include Bharthal, Bijwasan, Carterpuri, and Tau Devi Lal Park in Sector 23. An interchange is expected with the Gurugram Metro corridor at Sector 23.If implemented, the extension would provide direct metro access from Dwarka to key commercial hubs including ..

Infrastructure Urban

17 Sep 2025

Ola, Uber, Rapido get nod for Mumbai bike taxi services

The Maharashtra State Transport Authority (STA) has granted provisional licences to Ola, Uber, and Rapido to operate bike taxi services in the Mumbai Metropolitan Region. The move follows the implementation of the Maharashtra Bike Taxi Rules 2025.As per STA’s approval, the minimum fare has been fixed at Rs 15 for the first 1.5 km, with an additional Rs 10.27 per km thereafter. The licences are valid for one month, during which operators must apply for permanent permits by fulfilling all regulatory conditions.Smart-Ride’s application was rejected for failing to meet the prescribed norms. Of..

Infrastructure Transport

17 Sep 2025

Adani wins Kedarnath ropeway project to cut trek to 36 minutes

Adani Enterprises Ltd (AEL) has secured the contract to build a 12.9-km ropeway connecting Sonprayag with Kedarnath, a project expected to transform the pilgrimage experience. Awarded by National Highways Logistics Management Ltd (NHLML), the project will be executed under the National Ropeways Development Programme – Parvatmala Pariyojana.Currently, pilgrims undertake a gruelling nine-hour trek to Kedarnath. The ropeway will reduce this journey to just 36 minutes and can transport 1,800 passengers per hour in each direction, serving the nearly 20 lakh devotees who visit annually.The Rs 25,0..