India's Logistics Cost to Drop to 9% as Road Infrastructure Booms: Gadkari

The Union Minister said that research by IIT Bangalore, IIT Kanpur and IIT Chennai completed six months ago showed road‑infrastructure improvements had already reduced logistics costs by 6 per cent to about 10 per cent, a statement said.

"Earlier, logistics costs in India were as high as 16 per cent (of GDP), compared to around 18 per cent in China and about 12 per cent in America and Europe," the minister said.

Nitin Gadkari made the remarks while presenting the 57th EEPC India National Awards to top engineering exporters, and stressed that infrastructure, technological innovation and sustainable practices are central to boosting exports.

He noted that engineering exports contribute significantly to foreign exchange earnings, while creating employment opportunities and fostering industrial growth.

The minister said that 36 green express highways are under development and would transform the economic scenario for logistics costs.

Gadkari mentioned that the two-wheeler industry in India is already exporting nearly 50 per cent of its production.

"Now, all the famous brands of the world, from Mercedes to all the big people, are present in India and are looking to export their cars from here. I remember, about 6 to 8 months before, when I got the opportunity to launch an electric Mercedes, the chairman of Mercedes told me that they have now decided to move towards 100 per cent electric, and their manufacturing centre will be in India," he said.

Gadkari noted that the Indian auto sector surpassed Japan about 6-8 months back, and now it ranks in third position in the world.

India's industry sized at Rs 22 lakh crore follows the US and China in rankings, with industry sizes at Rs 79 lakh crore and Rs 49 lakh crore respectively

"I am confident that because of new technology, innovation, and research in alternative fuel and biofuel, the sky is the limit. The way our industry is marching towards alternative fuel and biofuel, we are going to be number one in the world," the minister said.

He expressed a five‑year ambition to reach the top spot through alternative fuels and biofuels.

He also underscored the importance of alternative fuel and urged the industry to use electric trucks to move their goods from factories to ports.

Pankaj Chadha, Chairman, EEPC India, highlighted the resilience and adaptability of Indian engineering exporters especially in light of recent disruptions in key sea routes.

Despite multiple external challenges, including the West Asia conflict and trade disruptions on key sea routes, India's total engineering goods exports hit an all-time high of $122.43 billion in FY26, up 4.86 per cent year-on-year.

- IANS