India’s logistics cost slips to single digit: Nitin Gadkari

New Delhi: The cost of logistics in India has come down to single digits, helped by rapid expansion of highways and economic corridors, Union Minister Nitin Gadkari said on Wednesday.

Speaking at BME Conclave 2026, Gadkari said a recent report by IIT Chennai, IIT Kanpur and IIM Bangalore revealed that India’s construction of highways and economic corridors has helped reduce the country’s logistics cost to 10 percent from 16 percent earlier.

“This report came 4-5 months ago. I can now say with full confidence that India’s logistics cost has reduced to 9 percent… now India’s export market will be more competitive,” he said.

The Minister of Road Transport and Highways said that the cost of logistics is 12 percent in the United States, 12 percent in European countries and 8 to 10 percent in China.

Talking about India’s automobile sector, he said, “Our target is to make India’s automobile industry the number 1 in the world”.

“When I took over as transport minister, the size of the Indian automobile industry was Rs 14 lakh crore. The size of the Indian automobile industry is now Rs 22 lakh crore,” Gadkari added.
He said the automobile sector provides employment to 4 lakh youth and provides the highest GST to the Center and states. Currently, the size of the US automobile industry is Rs 78 lakh crore, followed by China (Rs 47 lakh crore) and India (Rs 22 lakh crore).

The minister said biofuel and alternative energy should be encouraged, citing the West Asian crisis that has created fuel shortages in many Asian countries.

“From an economic perspective, from a pollution perspective, it is time for the world and India too to promote biofuel and alternative fuel,” he added.

Pointing out that green hydrogen is the fuel of the future, Gadkari said that the government has identified 10 highway areas in different parts of the country for the use of green hydrogen-powered trucks in order to reduce vehicle pollution.

He said that there will be hydrogen filling stations installed by Indian Oil and Reliance Petroleum in these areas.

The Minister said that the metal sector is important for the development of the country and that waste metal materials can also be used in road construction.