India's logistics cost down to 9% now; infra to remain key priority of govt: Nitin Gadkari
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The Union road transport and highways minister Nitin Gadkari today said India's logistics cost has come down to 9% and infrastructure is a key priority for the Modi government.
Addressing the 31st CII Partnership Summit, 2026 in Vishakhapatnam today, Gadkari said development of infrastructure is extremely crucial for the economy.
"Today, under the leadership of Prime Minister Narendra Modi, the central government has accorded highest priority to infrastructure development, which includes water, power and roads and highways etc," Gadkari said.
Gadkari said India has the largest highway infrastructure in the world now and highway construction is taking place at record speed the country.
He said the infrastructure push in the country has helped lower the logistics cost in the country. "According to studies done by IIM Bengaluru and IIT Kanpur done six months back, the logistics cost in the country has come down by 6% to 10%," Gadkari said.
"Today, I can claim that the the logistics cost has come down to 9% because of good quality road infrastructure,. That is very important for the exports and the international markets," Gadkari added.
Gadkari said Andhra Pradesh must develop roads and ports to develop its economy. "Andhra Pradesh has long coastline. Long coastline and major ports are major strengths for Andhra Pradesh," Gadkari said, adding that the government is implementing projects worth Rs 3 lakh crore in the state.
Gadkari said Bengaluru Kadappa Vijayawada corridor is 70% complete and will be operational by December 2027. "It will ensure faster movement of cement. Raipur Vishakhapatnam corridor costing Rs 16000 crore is 96% complete and will be operational in 2027," Gadkari said, adding that the project will help decongest the Vishakhapatnam port and incentivise the business of the port. The project will reduce the travel time from 13 hours at present to 5 hours.
Gadkari also said 1,000 km mega project connecting North India to South India is also under progress. "The project from Surat on Mumbai expressway to Nashik, Ahmednagar, Karnool, Kochin, Hyderabad to Chennai worth Rs 45000 crore will reduce the distance by 300 km. The travel time of 31 hours will come down to 17 hours," said Gadkari.
Gadkari said this is the most important line connecting South India to North India and will further reduce the logistics cost.