India achieves logistics cost reduction target of 9% of GDP: Gadkari

India has successfully brought its logistics costs down to 9% of GDP, meeting the government’s long-standing target to slash expenses from levels as high as 16%, Union Minister for Road Transport and Highways Nitin Gadkari said.

Addressing the Amazon Smbhav Summit, Gadkari credited the sharp decline to the rapid expansion of high-quality road infrastructure across the country. Citing a recent study conducted by IIM Bangalore, IIT Madras, and IIT Kanpur, he said the findings show a 6% reduction in logistics costs, largely driven by improved connectivity.

The minister noted that India is now closer to global benchmarks, with logistics costs at 8% of GDP in China and around 12% in the US and Europe.

Gadkari also stressed the need for an urgent shift towards cleaner and alternative fuels to reduce pollution and curb soaring fossil fuel imports, which currently stand at ₹22 lakh crore. He pointed out that the transport sector alone contributes nearly 40% of urban air pollution, particularly in cities like Delhi.

While electric mobility is gaining momentum, Gadkari reaffirmed that biofuels remain a top priority for the government. He cited examples such as Bajaj’s CNG motorcycle, which reduces fuel costs to just ₹1 per kilometre, and highlighted the steep drop in lithium-ion battery prices from $150/kWh to $55–60/kWh over the years.

He also praised innovations emerging from India’s premier institutes, noting that students have successfully demonstrated aluminium–air battery technology, which he said could become a cost-effective alternative to conventional lithium-ion systems.

The minister urged Amazon and other industry leaders to deepen their engagement with rural, agricultural, and tribal communities, emphasising the significant untapped potential in these sectors for producing high-quality, well-designed products.