India’s logistics cost will come down to 9% of GDP by April next year : Gadkari

NEW DELHI : Union Minister of Road, Transport and highways Shri Nitin Gadkari said that logistics cost of India will come down to 9 per cent of GDP by April next year on Thursday.

Addressing an event here, Gadkari further said the country’s exports will also increase when the logistics cost comes down to single digit. “Our logistics cost now is 16 per cent…It will come down to 9 per cent by April next year,” he said. He added that Indian economy needs to create more jobs.

However, according to quick estimates of economic think tank National Council of Applied Economic Research (NCAER), the logistics cost in India ranged from 7.8 per cent to 8.9 per cent of GDP in 2021-22.

While noting that earlier governments did not give enough attention to rural sector, he said that the Prime Minister Shri Narendra Modi-led government is giving more priority to the agriculture sector.

“We need to increase our agriculture growth…We need to increase per capita income in rural areas,” Gadkari said. The minister noted that India is the fastest growing major economy, and the government is working hard to make it the third largest economy in the world.

Currently, India is the fifth largest economy globally