August 2025: Union Minister for Road Transport and Highways, Nitin Gadkari, has unveiled a plan to reduce India’s logistics costs to single-digit levels by the end of 2026. The initiative is aimed at boosting the country’s export competitiveness and strengthening its position in global trade.
At present, logistics expenses in India account for approximately 14–16% of the nation’s GDP, considerably higher than China’s 8% and Europe’s 12%. Achieving single-digit logistics costs is expected to significantly reduce the cost of transporting goods across the country, making Indian products more affordable and competitive in international markets.
Gadkari highlighted that ongoing infrastructure projects would play a key role in achieving this target. The Delhi-Mumbai Expressway, for instance, is set to cut travel time between the two cities to around 12 hours, improving transportation efficiency. The Nagpur-Vijayawada Expressway is also expected to enhance connectivity in eastern India, turning Vidarbha into a strategic logistics hub with improved access to ports in Andhra Pradesh.
Beyond physical infrastructure, the government is promoting technological innovations and environmentally friendly practices. Digital toll systems are being implemented to streamline logistics operations, while alternative energy sources and green fuels are being encouraged to lower operational costs and reduce dependency on conventional fuels.
Experts suggest that lowering logistics costs will make Indian exports more competitive globally, stimulate domestic manufacturing, and support broader economic growth. Reduced transportation expenses are expected to benefit both producers and consumers, enhancing the overall efficiency of India’s supply chains.
Gadkari stressed that achieving single-digit logistics costs is central to India’s economic strategy. By focusing on infrastructure development, technological integration, and sustainability, the government aims to create a more efficient and cost-effective logistics sector, positioning India as a global leader in supply chain management by 2026.
