India Targets Single-Digit Logistics Costs by 2026: Nitin Gadkari

In a major policy announcement, Union Minister for Road Transport and Highways, Nitin Gadkari, unveiled an ambitious plan to slash India’s logistics costs to single-digit levels within the next 2-3 years. Speaking at the 5th edition of Amazon’s Smbhav Summit, Gadkari emphasized that reducing logistics expenses would enhance India’s global economic competitiveness.

"Currently, logistics costs in India are 14-16 per cent, compared to 8 per cent in China and 12 per cent in the US and Europe, ”he stated. “With expressways like Delhi-Mumbai cutting travel time to 12 hours and Chennai-Bengaluru down to just two hours, we are optimizing speed and efficiency. I am confident we can reduce logistics costs to 9 per cent within the next few years.”

The move is expected to lower operational expenses for businesses, making India a more attractive destination for global trade and investment.

Gadkari also applauded Amazon’s efforts toward building an electric vehicle (EV) fleet and shared the government’s commitment to reducing pollution through clean energy initiatives. “I arrived at this event in an Innova powered by 100 per cent bio-ethanol, which generates zero pollution. This is the first of its kind,” he revealed, underscoring India’s push toward sustainable mobility.

He also underscored the potential of hydrogen as a key fuel for the future, highlighting the role of biomass and biodigester technologies in producing hydrogen and CNG. He expressed confidence that India would emerge as a global leader in alternative and biofuels within the next decade.

The government’s integrated approach to infrastructure development, coupled with policy reforms, could transform India into a global logistics powerhouse in the coming years.