Nitin Gadkari Promises Reduction in Logistics Cost at Deloitte Government Summit

Nitin Gadkari's Vision for Logistics Cost Reduction

New Delhi: Nitin Gadkari, India's Road Transport and Highways Minister, has projected that the nation's logistics cost will decrease to single-digit percentages within the next five years. Addressing the Deloitte Government Summit on Thursday, Gadkari emphasized the importance of constructing world-class highways and expressways to realize this ambitious goal.

The Significance of Logistics

Reducing logistics costs is crucial for boosting India's economic efficiency and enhancing global competitiveness. The Economic Survey of 2022-23 noted that logistics costs in India currently range between 14-18% of GDP, significantly higher than the global benchmark of 8%.

Transforming the Automobile Industry

Gadkari noted that with the right investments and strategic initiatives, India aims to transform its automobile industry into the world's number one market. He highlighted that India has recently surpassed Japan to become the third-largest automobile market, following the US and China, with the industry's value surging to ₹22 lakh crore in 2024 from ₹7.5 lakh crore in 2014.

Strengthening Macroeconomic Stability

According to Gadkari, India stands as the fastest-growing major economy globally. He emphasized that increasing the purchasing power of farmers is pivotal for overall economic growth. Promoting exports while curbing imports is essential for strengthening India's economic stature.

Efficiency Over Financial Audits

In a progressive outlook, Gadkari advocated for prioritizing performance audits over financial audits within organizations, asserting that this would lead to improved operational efficiency.