India Successfully Lowers Logistics Cost to 9% of GDP, Confirms Nitin Gadkari

The government has successfully reduced logistics costs to 9% of GDP, down from 16%, thanks to improved roads, according to Union Transport Minister Nitin Gadkari. Speaking at the Amazon Smbhav Summit, Gadkari highlighted the importance of transitioning to alternative fuels like biofuel and hydrogen. He expressed optimism that India will become an energy exporter within a decade.

Gadkari noted that logistics costs in China are 8% of GDP, while in Europe and the US, they stand at 12%. In India, it was previously as high as 16%. A report from IIM Bangalore, IIT Chennai, and IIT Kanpur indicated a 6% reduction in logistics costs due to better roads. Gadkari stated, "Just now we received a report from IIM Bangalore, IIT Chennai, and IIT Kanpur. They clearly indicate that because of good roads, now the logistics cost is reduced by 6 per cent..."

Focus on Alternative Fuels

Besides infrastructure improvements, the government is also addressing fuel issues. Gadkari mentioned that India imports fossil fuels worth Rs 22 lakh crore, contributing significantly to pollution. In Delhi alone, 40% of air pollution stems from the transport sector. Gadkari stated, "We have taken the decision to change the fuel."

Electric vehicles are gaining traction, but biofuel remains a top priority for the government among alternative fuels. Gadkari highlighted Bajaj's CNG motorcycle, which reduces fuel costs to Re 1 per kilometre. He recalled launching the first electric vehicle when lithium-ion batteries cost USD 150 per kilowatt-hour; now they cost USD 55-60 per kilowatt-hour.

Innovative Energy Solutions

IIT students have developed aluminum-air technology using aluminum as fuel, which is cheaper than lithium-ion batteries. Gadkari expressed confidence that India will transition from being an energy importer to an exporter within ten years. He said, "Presently, we are the importer of energy. But as a transport minister, I'm confident that in due course of time, within 10 years, we will be the exporter of energy."

Gadkari urged Amazon to focus on rural agriculture and tribal sectors for quality product development with good design potential. This approach could unlock significant opportunities in these areas.

The government's efforts in reducing logistics costs and promoting alternative fuels are crucial steps towards sustainable development. These initiatives aim to address pollution challenges while positioning India as a future energy exporter.

With inputs from PTI