Union Road Transport and Highways Minister Nitin Gadkari on Wednesday said India’s logistics cost has dropped significantly due to rapid improvements in road infrastructure, bringing the country closer to the global benchmark. Speaking at Amazon Smbhav 2025, Gadkari noted that logistics costs — once as high as 16% of GDP — have now fallen to 9%.
“Alluding to India’s traditionally high logistics costs, one of the challenges for MSMEs, I can confidently say today that logistics cost is coming down to 9%,” Gadkari said. He cited findings from IIM Bangalore and IIT Kanpur, which indicated a 6% reduction driven by better roads.
Gadkari highlighted India’s extensive road network of 63 lakh km, the second largest globally. He added that the government is developing 28 access-controlled expressways to further reduce logistics costs. “We are just six days away from starting the bridge from Akshardham for the Delhi-Dehradun Highway. After opening, Delhi to Dehradun will take only two hours, and Delhi to Mumbai will be 12 hours,” he said. Over ₹1.5 lakh crore is being invested in road projects across the National Capital Region.
Addressing environmental concerns, Gadkari said the government is implementing preventive measures to curb pollution from the transport sector, which accounts for nearly 40% of air pollution. He reiterated his long-standing push for alternative fuels, including biofuels and hydrogen. “Hydrogen is the fuel of the future. I even have a hydrogen car,” he remarked. He also noted that 80 lakh tonnes of solid waste are being used in construction projects in Delhi and Vadodara, with recyclables such as plastic and aluminium being recovered and organic waste converted into Bio-CNG.
Urging Amazon to prioritise rural, agricultural, and tribal sectors, Gadkari stressed the need to boost economic contribution from agriculture, which currently accounts for just 12% of GDP despite engaging 60% of India’s population. “This is the time for Atmanirbhar Bharat. We need rural India where new technology, economic viability, raw material availability, and marketability converge,” he said.
At the event, Amazon announced plans to invest more than $35 billion across its businesses in India through 2030. Amazon Smbhav is the company’s flagship annual summit bringing together government leaders, industry stakeholders and MSMEs.
