India's logistics cost to come down to 9% in five years: Gadkari

Road Transport and Highways Minister Nitin Gadkari on Thursday said India's logistics cost will come down to 9% in the next five years, compared with 14%-16% currently on the back of massive investments in infrastructure, and alternative fuel technology.

"Today, we are working on alternative fuel, biofuel, bio CNG, CNG, and electric. Our aim is to make the Indian automobile industry number one in the world," says Gadkari at Deloitte India's Arohan (Growth with Impact) summit in New Delhi.

"Today technology is going to change, and cost is going to reduce. We are also reducing the logistics cost. We are constructing highways. With highway construction and focus on alternative fuels, logistics costs will come down," Gadkari says.

"Presently our logistics cost is 14% to 16. It's 12% in the US and Europe while 8% in China. I am confident that within five years, India's logistics cost will come down to a single digit at about 9%. We will be able to compete internationally," he adds.

Gadkari emphasises India is the fastest growing economy in the world and PM Modi's dream is to make India the third largest economy globally.

"People with expertise need to identify potential sectors of growth. Technology is important, financial resources are important. The most important thing is entrepreneurship and leadership," he says.

Gadkari says rural and tribal segments of the economy also need focus.

"The urban focus of organizations and the government is not positive for the rural and tribal sectors. Urban-centric mentality is creating economic distortions," he says.

"We have to have growth plans in two parts. One for the urban sector and the other for the rural sector," he adds.