India’s Logistics Costs to Drop Below 10% by December: Gadkari

Swift Summary

• Union Minister Nitin Gadkari stated on August 2, 2025, that India’s logistics cost is expected to drop below 10% by December.
• reducing logistics costs will enhance India’s economic competitiveness against China (8% logistics cost) and the U.S. (12%).
• Efforts include transition to electric mobility and biofuels, expansion of highways, and development of sea ports as water transport is economical.
• Gadkari virtually inaugurated two road projects and laid foundations for 27 others worth ₹5,235 crore in Andhra Pradesh.
• key projects include a greenfield highway between Hyderabad-Vijayawada; six-laning of Vijayawada-Machilipatnam highway; four-laning roads like guntur-Vinukonda and Muddanur-Kadapa among others.
• Emphasized Andhra Pradesh’s potential with its major port in Visakhapatnam alongside new ports along its extensive coastline supported by the Center.
• The transportation sector is working toward blending fuels with ethanol, isobutanol, hydrogen; future prospects include airplanes using ethanol fuel.
• Highlighted high road accident rates in Andhra Pradesh per a Ministry safety audit; urged focused district-level planning to tackle this issue.

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Indian Opinion Analysis
efforts to reduce India’s logistics cost below 10% signal important advancements in infrastructure development aimed at improving economic efficiency and global competitiveness. Building highways alongside integrating multi-modal logistic hubs like sea ports underscores a balanced approach leveraging India’s geographical advantages for reducing costs through improved water transportation networks.

The investment of ₹5,235 crore into road projects reflects both immediate infrastructure improvements-such as expanded connectivity-and long-term visions for reduced vehicular dependency on fossil fuels through transitions towards blended biofuels and electrification. This approach aligns closely with India’s broader environmental goals while also addressing practical energy needs.

However, gadkari’s acknowledgment of Andhra Pradesh’s high road accident rates underscores the importance of prioritizing safety measures along with expansion efforts. A focus on district-level planning could ensure local-specific challenges are addressed effectively.thes infrastructural developments appear poised to deliver economic benefits while opening avenues for sustainable energy innovations across industries like aviation over time-though consistent monitoring will be necessary to avoid logistical bottlenecks or implementation delays.

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