India is set to bring down its logistics costs to a single-digit percentage within the next five years, Union Road Transport and Highways Minister Nitin Gadkari announced on Thursday. Speaking at the ' Deloitte Government Summit,' Gadkari highlighted the ongoing construction of highways and expressways as key initiatives to reduce these costs.
"I am confident that within five years our logistics cost will be in single-digit," he stated, underscoring the government's commitment to infrastructural development.
In contrast, the National Council of Applied Economic Research (NCAER) estimates indicated that India's logistics cost ranged between 7.8% to 8.9% of GDP in the fiscal year 2021-22. The reduction in logistics costs is seen as a crucial step toward enhancing India's economic efficiency and global competitiveness.
Gadkari also expressed his vision for India's automobile industry, aiming to make it the largest in the world. India recently surpassed Japan to become the third-largest automobile market globally, following only the United States and China. The industry's value has surged from ₹7.5 lakh crore in 2014 to ₹22 lakh crore in 2024.
Macro-Economic Outlook
Discussing the broader economic landscape, Gadkari described India as the fastest-growing major economy globally. He emphasized the importance of increasing the purchasing power of farmers to drive economic growth. "If we can increase the purchasing power of farmers, then it will have a big positive impact on our economy," Gadkari said.
He also stressed the need for India to enhance exports while curbing imports to bolster the country's economic standing. In addition, he advocated for the development of 'smart villages' as economically viable entities alongside the concept of smart cities.
Focus on Performance Audit
Highlighting the significance of efficiency, Gadkari opined that performance audits should take precedence over financial audits in organizations. This approach, according to him, can help drive better outcomes and enhance overall productivity.
The government's focus on reducing logistics costs, expanding the automobile industry, and improving the macroeconomic environment marks a concerted effort to position India as a leading global economy in the coming years.
"I am confident that within five years our logistics cost will be in single-digit," he stated, underscoring the government's commitment to infrastructural development.
In contrast, the National Council of Applied Economic Research (NCAER) estimates indicated that India's logistics cost ranged between 7.8% to 8.9% of GDP in the fiscal year 2021-22. The reduction in logistics costs is seen as a crucial step toward enhancing India's economic efficiency and global competitiveness.
Gadkari also expressed his vision for India's automobile industry, aiming to make it the largest in the world. India recently surpassed Japan to become the third-largest automobile market globally, following only the United States and China. The industry's value has surged from ₹7.5 lakh crore in 2014 to ₹22 lakh crore in 2024.
Macro-Economic Outlook
Discussing the broader economic landscape, Gadkari described India as the fastest-growing major economy globally. He emphasized the importance of increasing the purchasing power of farmers to drive economic growth. "If we can increase the purchasing power of farmers, then it will have a big positive impact on our economy," Gadkari said.
He also stressed the need for India to enhance exports while curbing imports to bolster the country's economic standing. In addition, he advocated for the development of 'smart villages' as economically viable entities alongside the concept of smart cities.
Focus on Performance Audit
Highlighting the significance of efficiency, Gadkari opined that performance audits should take precedence over financial audits in organizations. This approach, according to him, can help drive better outcomes and enhance overall productivity.
The government's focus on reducing logistics costs, expanding the automobile industry, and improving the macroeconomic environment marks a concerted effort to position India as a leading global economy in the coming years.
