Indian firms must forge JVs with hi-tech US companies: Gadkari
New Delhi, May 21
Union Road Transport and Highways Minister Nitin Gadkari on Thursday said that there was a strong need for Indian firms to forge joint ventures with US companies to gain access to the latest technologies.
In his address at the annual leadership summit of the American Chamber of Commerce (AMCHAM), Gadkari said: "India is the fastest growing major economy while US companies develop lots of new technologies, so it is very important for Indian companies to have joint ventures with US companies."
The minister also highlighted that the Ministry of Road Transport and Highways is looking at consulting US companies in the preparation of detailed project reports (DPR) for highway projects.
Noting that the supply chain is the most important part in logistics, Gadkari said logistics cost in India has come down to a single digit, helped by the rapid expansion of expressways and economic corridors.
Gadkari pointed out that the latest study prepared by IIT Chennai, IIT Kanpur, and IIM Bangalore shows that India's construction of expressways and economic corridors has helped to cut the country's logistics cost to 10 per cent from 16 per cent earlier.
The logistics cost is 12 per cent in the US, 12 per cent in European countries and 8-10 per cent in China, he added.
Gadkari also said that the government was aiming to make India's automobile industry the number 1 in the world in another five years.
"When I took charge as Transport Minister, the size of the Indian automobile industry was Rs 14 lakh crore. It is now Rs 22 lakh crore," he noted.
He said the automobile sector provides jobs to 4 lakh youths and the highest GST to the Centre and states. Presently, the size of the US automobile industry is Rs 78 lakh crore, followed by China (Rs 47 lakh crore).
The minister also said that India's dependence on fossil fuels is an economic burden, as Rs 22 lakh crore is spent annually on fuel imports, which constitute an environmental hazard. It is, therefore, crucial to adopt clean energy for the country's growth.
Gadkari further stated that the government has identified 10 highway stretches in different parts of the country for plying green hydrogen-powered trucks in order to reduce vehicular emissions.
These highway stretches include Greater Noida-Delhi-Agra, Bhubaneswar-Puri-Konark, Ahmedabad-Vadodara-Surat, Sahibabad-Faridabad-Delhi, Jamshedpur-Kalinganagar, Thiruvananthapuram-Kochi, and Jamnagar-Ahmedabad, among others.
AMCHAM comprises over 400 US companies along with individual and honorary members. The incumbent US Ambassador to India serves as the Honorary President of the organisation. The elected national executive board consists of country heads from leading US corporations.
— IANS
Reader Comments
Good to see focus on green hydrogen trucks. We need to reduce that fuel import bill of Rs 22 lakh crore—it's bleeding our economy. But we must ensure JVs don't become a one-way street where US firms take all the profits and IP. Fair tech transfer is key.
Impressive numbers—auto industry from Rs 14 lakh crore to Rs 22 lakh crore under Gadkari ji. But we also need to ensure that these JVs create jobs for our engineers and not just assemblers. Make in India with real R&D, not just screwdriver assembly.
Finally, someone talking about logistics cost! From 16% to 10% is huge—this is what will make our exports competitive. And consulting US companies for DPRs? Why not? They have decades of experience building interstate highways. As long as local firms also learn.
I work in automotive supply chain. The progress in infrastructure is real—new expressways have cut our transit times by 30-40%. But on JVs, we need to be careful. US companies will want to sell their tech, not co-develop. Need strong IP protections and a clear roadmap for Indian firms to build their own capabilities.
Green hydrogen trucks on highways like Delhi-Agra and Bhubaneswar-Puri? Makes sense for high-traffic corridors. But infrastructure for hydrogen refueling is a massive challenge. Hope the government has a concrete plan, not just announcements. Also, what about electric vehicles? Both need to go hand in hand.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.