“Aim to reduce logistics costs from double-digit to 9% in 3 years”: Nitin Gadkari

Currently, the logistics costs in India are between 14 to 16%.

By Radhika Dave calendar 12 Sep 2023 Views icon5450 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

In order to be competitive, the country will need to reduce its logistics costs, said Nitin Gadkari. Addressing the 63rd Annual SIAM Convention, the Union Minister for Road, Transport and Highways assured that in the coming three years, the logistics costs would be reduced to a single digit of 9%, enabling further ease in exports for the automotive industry, and increase competitiveness in the world market.

Currently, the logistics costs in India are between 14 to 16%, whereas in China it is 8-10% and in Europe it is 12%.

In 2022, Prime Minister Narendra Modi had launched the National Logistics Policy, stating that reduction in logistics costs was vital to improving the competitiveness of Indian goods, both in domestic and export markets.  

He had reiterated that schemes like Sagarmala and Bharatmala expedited the work of Dedicated Freight Corridors to improve logistics connectivity for systematic infrastructure development.

The automotive industry is a major driver of the global logistics market and the Indian logistics industry, which currently stands at about US$ 15 billion and is expected to grow at a CAGR of 10–12% in the coming years. A surge in e-commerce, infrastructure development, and the increasing importance of supply chain management, is slated to bolster the growth of the Indian logistics industry. 

Also read: 

To accelerate EV adoption, Indian Govt hopes lithium mining in Jammu & Kashmir will begin in a year

'Will urge Finance Minister to levy 10% pollution tax on diesel engines': Nitin Gadkari

PM Narendra Modi urges India Auto Inc to develop a sustainable mobility ecosystem

Auto stocks react on government’s suggestion to impose 10% tax on diesel engines

Tata Motors inaugurates vehicle scrapping facility in Surat

auther Autocar Pro News Desk calendar23 Sep 2023

The state-of-the-art facility uses environmentally friendly processes and has the capacity to disassemble 15,000 end-of-...

Aprilia RS 457 pre-bookings to commence soon

auther Autocar Pro News Desk calendar23 Sep 2023

No prices for the RS 457 has been announced yet.

Hero MotoCorp backed Ather Energy faces Rs 864.50 crore net loss

auther Autocar Pro News Desk calendar23 Sep 2023

Operating revenues surge by 336.62% in FY23.