According to Union Minister Nitin Gadkari on Wednesday, the government is attempting to reduce logistics expenses from their present range of 14% to 16% of GDP to 9% of GDP over the course of the next three years. The Road, Transport and Highways Minister also stated that when India’s logistics costs are reduced to single digits, exports will increase. This was in reference to the gathering sponsored by the industry organisation CII.
According to some estimates, logistical expenses in India are in the double digits, which is what the government is relying on. The National Logistics Policy (NMP) and the PM Gati Shakti Initiative were launched by the government to increase the sector’s competitiveness and lower logistics costs.
The NMP and the PM Gati Shakti Initiative were launched by the govt to increase the sector’s competitiveness and lower logistics costs
A task group will be established to provide a framework to estimate logistics expenses across the country, the Commerce and Industry Ministry announced earlier this year. The National Council of Applied Economic Research (NCAER), the Ministry of Statistics and Programme Implementation (MOSPI), representatives from NITI Aayog, academic experts, and other stakeholders will be among the task force’s participants.
Further, Nitin Gadkari claimed that his ministry has plans for 260 ropeways and funicular railway projects totalling Rs. 1.3 lakh crore. The minister added that the ministry has located land for 500 bus depots and was looking for funding from leading businessmen to establish those bus depots. Gadkari estimates that 2 lakh electric buses are required in India.
According to Nitin Gadkari, India would soon become a super economic power by utilising economic viability, PPPs (public-private partnerships), and cutting-edge technology in infrastructure development. He continued, “With a well-functioning and advanced Transport & Road connectivity, we are embarking on rising potential in the tourism sector and has made tourism opportunities more affordable and accessible for people from all income strata.”
India would soon become a super economic power by utilising economic viability
The minister stated that India now imports fossil fuels worth Rs. 16 lakh crore. “In order to reduce this, we have given methanol, ethanol, bio-CNG, E-Cars, and bio-LNG priority in public transportation. Future-oriented is hydrogen fuel. According to the Minister, India is currently third in the world for the manufacture of electric vehicles, overtaking Japan, and will be first in the next five years. Previously, it was fourth.
India is a significant hub for automobile exports, and in the near future, buses, tractors, and auto rickshaws will join the list. The minister also emphasised that the government has the plan to introduce sky buses to ease traffic congestion and that with all of these initiatives, the world would no longer view India as a significant energy importer but rather as an exporter of energy.
Gadkari made a notable argument that since India has reduced purchasing power, it requires affordable transit models and that the government is actively seeking out such solutions. The government has made numerous attempts to improve road connectivity, including in hilly areas, which will increase tourism and create additional prospects for employment.
Additionally, he underlined how crucial credit scores are for enhancing both quality and speed. Given the growing economic viability, per-capita GDP, and expanding opportunities, the minister asked the private sector to step forward and take advantage of the growing investment opportunities in the industry. “To make India a super economic power, entrepreneurship and adequate investments are crucial.”