India’s logistics cost will be reduced to a single digit—around 9%—before December 2025, Union Minister for Road Transport and Highways Nitin Gadkari announced on Thursday. He said this would significantly boost profit margins for industries, lower domestic supply chain expenses and make Indian products more competitive in global markets.
Speaking at an event hosted by PHD Chamber of Commerce and Industry (PHDCCI), Gadkari highlighted that the government’s aggressive highway expansion and infrastructure push is already yielding results.
He cited a joint study by IIM Bangalore and IIT Chennai, which revealed:
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Overall logistics cost has fallen by 5–6%
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Warehouse-to-consumer segment cost has dropped by 1.33%
Gadkari said the government is focused on integrated logistics, including multi-modal connectivity, expressways, ports, and dedicated freight corridors, to further reduce costs. Achieving a sub-10% logistics cost places India closer to global benchmarks (8–10%) and supports the country’s ambition of becoming a $5 trillion economy and manufacturing hub.
Industry experts say if the target is met, it will improve supply chain efficiency, attract investment, and enhance export competitiveness across sectors such as automotive, FMCG, agriculture, and e-commerce.
