The government is working to reduce logistics costs to 9 percent of GDP from the current 14-16 percent over the next three years, Union Minister Nitin Gadkari said on Wednesday.
At an event organized by the CII Chamber of Commerce, the Union Minister for Roads, Transport and Highways said India’s exports will increase if its logistics costs fall to a single-digit percentage.
The government has made certain estimates that suggest logistics costs in India are in the double digits. The government has introduced a national logistics policy and an initiative by Prime Minister Gati Shakti to increase industry competitiveness and reduce logistics costs.
Earlier this year, the Department of Trade and Industry announced that a task force would be set up to formulate a framework for determining logistics costs in the country.
Task force members would include representatives from NITI Aayog, the Department of Statistics and Program Implementation (MOSPI), the National Council of Applied Economic Research (NCAER), academic experts and other stakeholders.
Gadkari said his ministry has proposals for 260 cable car and funicular projects worth Rs 1.3 million.
The Minister also said the Roads Ministry has identified land for 500 bus depots and has sought investment from top industrial companies to develop these bus depots. According to Gadkari, India needs 200,000 electric buses.