India has reduced logistics costs by six percentage points from 16% to 10% of GDP, thanks to sustained investment in road infrastructure, senior officials from the transport ministry stated on Monday. They attribute the savings to upgraded highways, smoother traffic flow, and streamlined freight movement, heralding a major leap for the nation’s export competitiveness and alignment with global sustainability and economic growth targets.
Ministry insiders emphasised that this logistics cost drop is a critical component of India’s broader strategy to bolster its aspiration of becoming a “Vishwa Guru” and emerging as the world’s third-largest economy. “Improved roads and better freight corridors are not just highways—they are economic lifelines,” declared a transport board analyst involved in national logistics policy. The reduction is expected to benefit agriculture, manufacturing and services sectors, with multiplier effects on job creation and equitable growth.
Experts highlighted that India’s logistics costs, historically around 16% of GDP, significantly outpaced China’s approximately 8% and developed markets such as the US and Europe, which average around 12%. Over the past decade, the government has focused on delivering greenfield expressways, enhancing port connectivity and launching sustainable transport corridors. These efforts include wider lanes for trucks, dedicated freight corridors, smart traffic management systems and solar‑powered lighting—measures aligned with zero‑carbon city planning. According to infrastructure planners, savings from reduced transit times and fuel consumption directly translate into lower prices for exporters and consumers.
With logistics costs now almost halved, experts say India stands on the brink of a competitiveness boom. A sustainability specialist in urban mobility noted: “Every kilometre of smooth, electrified highway is a step toward greener, more equitable urban growth.” Transport economists agree these improvements have cut out inefficiencies, with faster movement of goods enabling rural producers to reach new markets—reducing waste, carbon footprint and fostering inclusive growth. They caution, however, that maintaining these gains will require ongoing investment and community‑centred infrastructure planning, including pedestrian safety, pollution controls and equitable access.
Officials further announced that with current momentum, logistics costs are anticipated to reach approximately 9% of GDP by next year, closing the gap with high‑performing economies. Alluding to global benchmarks, they said continued scaling of sustainable projects should position India’s road network on par with the US within two years. Infrastructure specialists saw this as a powerful signal—for green urban development, regional equity and climate performance—tying economic ambition directly to environmental integrity.
