India's Logistics Cost Drops Below 10%: Gadkari Cites Improvement

India's Logistics Cost Slips to Single Digits, Says Union Minister Nitin Gadkari

India's logistics cost has dropped to 10 per cent, a significant decrease from 16 per cent earlier, thanks to the rapid expansion of expressways and economic corridors, Union Minister Nitin Gadkari announced on Wednesday. The Minister made this statement at the BME Conclave 2026.

According to a recent report prepared by IIT Chennai, IIT Kanpur, and IIM Bangalore, the construction of expressways and economic corridors has contributed to the reduction in India's logistics cost. The report, which was released 4-5 months ago, has now been confirmed by Gadkari, who said that India's logistics cost has dropped to 9 per cent. This decrease is expected to make India's export market more competitive.

A comparison of logistics costs in different countries shows that India's logistics cost is lower than several other major economies. While the logistics cost in the US and European countries is 12 per cent, it is 8 to 10 per cent in China. The table below provides a comparison of logistics costs in different countries:

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Gadkari also spoke about India's automobile sector, stating that the government's target is to make India's automobile industry the number 1 in the world. He noted that the size of the Indian automobile industry has increased significantly since he took charge as transport minister. The size of the Indian automobile industry has grown from Rs 14 lakh crore to Rs 22 lakh crore.

The automobile sector provides employment to 4 lakh youths and generates the highest GST for the Centre and states. However, India's automobile industry is still smaller than that of the US and China. 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).

Gadkari emphasized the need to encourage biofuel and alternative energy, citing the West Asian crisis, which created fuel shortages for many Asian countries. He said that from an economic and pollution point of view, it is time for the world and India to encourage biofuel and alternative fuel.

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The Minister also highlighted the importance of green hydrogen as a fuel of the future. He said that the government has identified 10 highway stretches in different parts of the country for plying green hydrogen-powered trucks to cut vehicular pollution. The stretches will have hydrogen filling stations set up by Indian Oil and Reliance Petroleum.

Gadkari also emphasized the importance of the metal industry for the development of the country. He noted that waste metal materials can also be used in road construction.