India’s Logistics Costs to Fall into Single Digits by 2026: Nitin Gadkari’s Roadmap for Economic Competitiveness

Union Minister for Road Transport and Highways Nitin Gadkari has announced that India’s logistics costs are set to drop to single digits—below 10% of GDP—by December 2025 or early 2026. The minister credited this achievement to India’s expanding network of expressways, economic corridors, and digital logistics systems. According to studies by IIT Chennai, IIT Kanpur, and IIM Bangalore, the country has already reduced logistics costs from 16% to around 10%.

Gadkari noted that bringing logistics costs down further will give India a strong competitive edge globally, making its exports more price-efficient compared to nations like the U.S. and China, where logistics costs are between 8% and 12%.

Nitin Gadkari says India’s logistics cost to fall to single digits by December(Jitender Gupta) | LiveMint

Strengthening the Backbone of India’s Economy

Lower logistics costs are not just an economic indicator—they’re a catalyst for growth. With the implementation of the National Logistics Policy and the Gati Shakti initiative, India’s focus is shifting toward efficiency, multimodal transport, and technology-driven transparency. Improved infrastructure is already helping industries reduce transportation delays and costs, improving export competitiveness and strengthening domestic supply chains.

According to reports, the logistics sector currently contributes around 10% to India’s GDP and employs over 22 million people. Streamlining this sector is expected to boost overall productivity and attract foreign investment into manufacturing and exports.

Gadkari’s Broader Vision: From Roads to Renewable Fuels

Beyond logistics, Gadkari’s ambitions extend to transforming India’s automobile industry into the largest in the world within the next five years. He revealed that since taking office, the sector’s value has risen from ₹14 lakh crore to ₹22 lakh crore, a trend he expects to accelerate with the adoption of cleaner and alternative fuels.

Highlighting environmental concerns, Gadkari reiterated that the transport sector is a major contributor to urban air pollution and fossil fuel dependency. To counter this, the government plans to promote electric mobility and biofuels, while also ensuring that all segregated solid waste is reused in road construction by 2027.

The Role of Agriculture and Innovation

In his address, Gadkari called for renewed attention toward India’s agricultural sector, which he believes will be the foundation of an Atmanirbhar Bharat (self-reliant India). He cited the success of ethanol production from corn, which has increased farmers’ income and pushed corn prices higher in states like Bihar and Uttar Pradesh. He urged industries and research institutions to collaborate on innovation in agriculture, renewable fuels, and logistics technology to sustain long-term growth.

The MGMM Outlook

India is entering a transformative phase where infrastructure growth is directly fueling economic strength. Union Minister Nitin Gadkari’s announcement that logistics costs will drop to single digits by 2026 marks a major shift in India’s economic landscape. With the rapid expansion of expressways, digital logistics systems, and the Gati Shakti initiative, the country is aligning efficiency with innovation. This transformation is not just about constructing roads—it’s about redefining the backbone of the Indian economy. By improving connectivity, reducing transportation delays, and enhancing transparency, India is empowering its industries to compete on a global scale. Lower logistics costs will make exports more price-competitive and accelerate the vision of a stronger, more resilient economy.

This progress embodies India’s collective journey toward sustainable and inclusive development. Gadkari’s broader vision connects infrastructure, renewable fuels, and agriculture into a unified growth model. The push for ethanol production, promotion of electric and biofuel vehicles, and the reuse of waste in road construction highlight how economic progress can harmonize with environmental responsibility. This integrated approach strengthens the foundation of Atmanirbhar Bharat—a self-reliant India built on innovation, green energy, and empowerment of rural communities. The move toward single-digit logistics costs is more than an economic milestone—it reflects a nation advancing toward a more efficient, competitive, and environmentally conscious future.

(Sources: LiveMint, The Financial Express, Economic Times)