Union Road Transport and Highways Minister Nitin Gadkari has made a significant announcement, stating that India’s logistics costs will reduce to single digits within the next five years. Speaking at the ‘Deloitte Government Summit,’ Gadkari shared that the government’s focus on building key infrastructure, including highways and expressways, is central to achieving this goal. His vision is to create a more efficient and cost-effective logistics network that will benefit industries across the country.
Infrastructure Development Key to Cost Reduction
India currently faces higher logistics costs compared to developed nations, which puts pressure on businesses and the overall economy. However, Gadkari is confident that with ongoing infrastructure projects, these costs will drop dramatically. The new highways and expressways being developed by the Ministry of Road Transport and Highways are designed to improve connectivity, reduce travel time, and streamline goods transportation. “I am confident that within five years, our logistics cost will come down to single digits,” Gadkari remarked, highlighting the positive impact of these projects.
India’s Automobile Industry to Lead the World
Beyond reducing logistics costs, Gadkari emphasized his ambition to make India’s automobile industry the largest in the world. In the last year, India became the third-largest automobile market, surpassing Japan, and is now only behind the US and China. According to Gadkari, India’s automobile sector is expected to grow from Rs 7.5 lakh crore in 2014 to Rs 22 lakh crore by 2024. The industry’s rapid expansion is being fueled by strong domestic demand and growing export markets.
Focus on Export Growth and Reducing Imports
Boosting exports and cutting down imports are key objectives for India’s broader economic strategy. Gadkari highlighted the importance of increasing the purchasing power of farmers, noting that this could have a significant positive impact on the economy. By empowering the rural population, the government aims to create a stronger domestic market, which in turn can support increased production and higher exports.
Gadkari also drew attention to the concept of smart villages, stating that these are just as crucial as smart cities in driving sustainable economic growth. By investing in both urban and rural development, India can achieve balanced economic progress.
Performance Audit for Road Projects
In a bid to ensure high-quality infrastructure, Gadkari issued a stern warning to contractors and agencies responsible for road maintenance. He made it clear that those who do not meet the expected standards will face serious consequences. Contractors who perform poorly will be removed from projects, while those who deliver high-quality work will be rewarded and recognized by the government. This focus on accountability ensures that India’s road network will continue to improve, further aiding in the reduction of logistics costs.
By stressing the importance of performance audits over financial audits, Gadkari underlined the government’s commitment to maintaining quality in its infrastructure projects. This approach ensures that both private contractors and government agencies are held accountable for the work they deliver.
Future Plans for Economic Growth
Gadkari’s speech also touched on India’s broader economic trajectory. As the fastest-growing major economy in the world, India is poised for substantial growth in various sectors. Gadkari believes that ongoing infrastructure projects, combined with efforts to boost exports and reduce reliance on imports, will help drive this growth.
With continued investment in road networks, highways, and expressways, the government is laying the groundwork for a more efficient logistics sector, which will benefit businesses, consumers, and the overall economy. This infrastructure will support faster transportation of goods, reducing fuel consumption and delivery times, and lowering costs for industries across India.
