The Indian government is resolute in its commitment to reducing logistics costs to single-digit levels within the next two to three years, according to Union Minister of Road Transport and Highways, Nitin Gadkari. Currently, logistics expenses in India range between 14-16%, significantly higher than global standards, making this initiative critical for boosting economic competitiveness.
The minister emphasized that high logistics costs have long been a barrier to industrial growth and international trade, urging for swift implementation of cost-cutting measures. This ambitious target is set to be achieved through infrastructure enhancements, streamlined transportation networks, and increased use of multimodal logistics parks.
Key projects, such as the Bharatmala and Sagarmala initiatives, are expected to play a pivotal role in reducing inefficiencies across road, rail, and water transport. Additionally, technological interventions like digital freight management and automation in warehousing are projected to further optimize the supply chain.
The move is anticipated to significantly benefit sectors like e-commerce, manufacturing, and agriculture by making logistics faster and more cost-effective. If successful, India’s transition to single-digit logistics costs could set a benchmark for emerging economies, fostering global competitiveness and economic growth.
