Center working to reduce logistics cost of GDP to 7.5% in 5 years: Amit Shah

The government is working to cut logistics costs to 7.5 percent of GDP from the current 13 percent, Union Home Minister Amit Shah said on Tuesday. Speaking at Assocham’s annual meeting, Shah said development would not be possible without developing the country’s infrastructure and reducing logistics costs.

Logistics costs in India amount to 13 percent of GDP compared to 8 percent in the rest of the world, making it difficult for Indian exports to compete globally, he said.

“We need to close the 8 percent and 13 percent divide. We have formulated a framework for the next five years. I can assure you that we will reach 7.5 percent logistics costs in the next five years,” he said.

Shah said Narendra Modi’s government has made a plan of Rs 100 lakh crore investments in infrastructure with some mega projects like doubling railway lines, widening them, special cargo corridors from Mumbai to Delhi and Amritsar to Kolkata among 11 other industrial corridors.

Citing other achievements in the infrastructure sector through major programs, Shah said the government has set a goal of reducing logistics costs below the national average by 2028 to make exports competitive globally.

The minister expressed confidence that the Modi government has laid a solid foundation to transform India into a developed nation by 2047 and a $5 trillion economy by 2025.

Shah attacked former Union finance minister P. Chidambaram, saying when Modi gave details of the Digital India program, the congress leader questioned how small amounts will be paid to a street vendor, whether villages will have electricity and broadband to enable these transactions .

He said UPI is now used by almost every company.

“UPI contributed 52 percent to the 8,840 million digital transactions in 2022, equivalent to Rs 1.26 million,” he said.

Shah also credited Modi with putting a human face on dreary GDP figures through welfare systems, which is unique in the world.

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