Government Plans Major Cost Reductions Over Next Five Years

In an exciting development for online shoppers, the Indian government aims to significantly reduce logistics costs in the next five years. This move could lead to lower prices for food and other goods purchased online. Union Minister for Road Transport and Highways, Nitin Gadkari, announced these plans during the Deloitte Government Summit, highlighting that the ministry is constructing several highways and expressways to facilitate this change.

Aiming for Single-Digit Logistics Costs

Gadkari expressed confidence that India’s logistics costs will drop to single digits within five years. Current estimates from the National Council of Applied Economic Research (NCAER) indicate that logistics costs accounted for between 7.8% and 8.9% of the GDP in 2021-22, signaling a critical area for improvement.

Setting the Stage for a Dominant Automobile Industry

In addition to logistics, Gadkari shared his ambition to make India’s automobile industry the largest in the world. India surpassed Japan last year to become the third-largest automotive market, trailing only the United States and China. He projected that the size of India’s automobile sector will soar from ₹7.5 lakh crore in 2014 to ₹22 lakh crore by 2024.

India: The Fastest Growing Major Economy

Highlighting India’s rapid economic growth, Gadkari emphasized the importance of boosting farmers’ purchasing power for a positive economic impact. He also noted the necessity for India to increase exports and reduce imports, stressing the importance of developing smart villages alongside smart cities for comprehensive national growth.

This initiative not only promises to enhance the online shopping experience but also positions India for robust economic advancement in the years to come.