India’s logistics cost to come down to 9% by 2025-end: Nitin Gadkari

Union minister of road transport and highways Nitin Gadkari on Thursday said that logistics costs in India has come down to 10% from 16% last year.

Gadkari, who was speaking at an annual convention organised by the Society of Indian Automobile Manufacturers (SIAM), said that India’s logistics cost will further fall to 9% by December 2025.

The Union minister said air pollution is the most important problem faced by the country and health problems are rising due to it. “The transport sector accounts for 40% air pollution,” he said.

India’s fossil fuel imports are going to increase and this will lead to more pollution, warned Gadkari, urging automakers to shift to alternate and bio-fuels. "Despite difficulties, we moved from BS-4 emission norms to BS-6 nomrs. We will discuss BS-7 emission norms with the industry and then decide on it," he said.

“Air pollution caused by fossil fuel is a big problem. Alternate and bio fuels should be encouraged,” he said.

On the raging 20% ethanol mandate for petrol, Gadkari said that automakers and regulatory body ARAI (Automotive Research Association of India) have given clarity. “The Supreme Court has also decided. The social media campaign against ethanol was paid to politically target me,” the Union minister claimed. “There was no truth in the allegations.”

As a result of the E20 mandate, Gadkari said that maize farmers across the country have benefitted to the tune of ₹45,000 crore from the ethanol mandate. “The diversification of agriculture towards energy will benefit farmers,” said Gadkari.

The Union minister said the GST rate rationalisation is a great move for the industry. “After the GST cut, the auto industry can become number 1 in the world,” he said.

Gadkari urged auto companies to provide incentives on scrapping of older vehicles. “3 lakh vehicles were scrapped in 2024. A majority of these were government vehicles,” he said.

“I have asked Finance Minister Nirmala Sitharaman and PM Narendra Modi if we can give benefit to customers who scrap their vehicles,” he said. 16,830 vehicles are getting scrapped each month on average, he said.

“If the whole vehicle is scrapped. The centre and state will benefit to the tune of ₹40,000 crore from GST. It’s a win-win situation. Those who bring scrapping certificate should get incentives,” he said, adding it will help in recycling of precious metals and steel.

On safety, Gadkari said the many companies across the world are sending their vehicles to India to get tested under Bharat NCAP. "5 lakh accidents happen annually. I think safety for all should be a priority," he said.

"India has a shortage of 22 lakh drivers. We have very few driver training centres. I would urge companies to set up driver training institutes for trucks and construction equipment," Gadkari said, adding that careless human behaviour is also a big problem that leads to accidents.