New Delhi, August 2025 – Union Minister for Road Transport and Highways, Nitin Gadkari, has assured that India will reduce its logistics costs to single-digit levels by the end of 2026, a move that could transform the country’s trade competitiveness.
Currently, logistics account for 14–16% of India’s GDP, compared to 8% in China and 12% in the US and Europe, making exports more expensive. By cutting costs, India aims to make its exports more affordable and globally competitive.
The announcement came during the inauguration of major highway projects in Delhi, alongside Prime Minister Narendra Modi. These include the Dwarka Expressway (₹5,360 crore) and the Urban Extension Road-II (UER-II) segment (₹5,580 crore)—together worth nearly ₹11,000 crore.
- Dwarka Expressway: Enhances connectivity to Yashobhoomi Convention Centre, Delhi Metro corridors, Bijwasan railway station, and Dwarka bus depot.
- UER-II: Expected to ease congestion on Delhi’s ring roads, improve connectivity, and facilitate industrial freight movement across the NCR.
According to Gadkari, these infrastructure upgrades will reduce travel time, ease traffic congestion, and lower logistics overheads. Faster freight movement through highways, expressways, and multimodal networks will directly cut costs for businesses and exporters.
Additionally, the government is pushing reforms like Multi-Modal Logistics Parks (MMLPs), integrating rail, road, warehousing, and digital platforms for efficient freight management. These efforts align with flagship programs like Bharatmala, which focuses on building national corridors and expanding connectivity across remote regions.
