Logistics cost to reduce from 16% to 9% of GDP by end-2024: Nitin Gadkari

New Delhi: Addressing the annual convention and the 95th AGM of FICCI, Union Minister Nitin Gadkari assured the industry that logistics cost, which is 16 percent of the GDP presently, will fall to single digits, up to 9 percent of the GDP by the end of 2024. "It is going to help us get more exports," the minister said, adding that now is the time to increase our business and presence in the international market.

The minister further stated that before the end of 2024, India's road infrastructure would be equal to the American standard.

Gadkari added India is on the path to building an inclusive Bharat by following the vision of Prime Minister Narendra Modi by boosting investment, economic growth, and employment creation to achieve sustainable development. However, "We need to have cooperation, coordination and communication between all stakeholders," he said.

India should be a leader in battery chemistry research: Gadkari

In addition, Gadkari noted the research in battery chemistry and said, "We should be the leaders in the sector." He added that the government aims to double the automobile sector to Rs 15 lakh crore. "This will create new jobs and make India one of the biggest automobile manufacturers in the world," he said. Moreover, underscoring the importance of sustainability in the construction sector, he noted, "We are trying to minimise the use of cement and steel in construction work by adopting substitutes like fly ash, oil slag, waste plastics, demolition waste."

Gadkari invited FICCI to prepare a comprehensive growth plan for the next 50 years for all sectors.

National Logistics Policy will create an integrated pathway towards economic development: FICCI president

On occasion, Sanjiv Mehta, President, FICCI, noted that the "all-inclusive, all-pervasive, and all-round development initiatives" of the government are transforming India, with each step bringing the nation closer to Aatmanirbhar Bharat. He added that the National Logistics Policy would be instrumental in creating an integrated pathway towards economic development. Moreover, he said, "The increased spending on infrastructure development is leading to a multiplier effect in rejuvenating the aggregate demand in the economy."

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"Infrastructure construction alone has the potential to contribute 25 percent of incremental growth non-farm jobs by 2030", he added.

Subhrakant Panda, President-elect, FICCI, underlined several policies that will catalyse the national economy by driving growth in allied sectors, like housing, steel, and cement. These include PM GatiShakti for integrated infrastructure development worth Rs 7.5 lakh crore in FY23, construction of 65,000 kilometres of national highways, and National Infrastructure pipeline.

Alluding to the government's focus on sustainable infrastructure, Panda highlighted FICCI initiatives, first on 'Decarbonising Construction: Building a Low Carbon Future' and the second, 'Future of Mobility: India's Journey Towards Net Zero', which will launch in January next year.

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