India to Cut Logistics Cost to Single Digits by 2026

Post by : Jyoti Singh

Photo: Instragram Gadkari.nitin

India’s Logistics Cost Will Drop to Single Digits by 2026, Says Nitin Gadkari; Major Highway Projects Inaugurated. India is taking big steps to make its roads and transport system faster, cheaper, and more modern. Union Minister for Road Transport and Highways, Nitin Gadkari, recently announced that by the end of 2026, India’s logistics cost will fall to single digits. This is a very important step because lower transport costs will help Indian goods become more competitive in world markets.

At present, the cost of logistics in India is quite high. It is about 14 to 16 per cent of the total value of goods. This is much higher compared to other countries. For example, in China it is just 8 per cent, and in the United States and Europe it is around 12 per cent. High logistics costs make Indian products more expensive and less attractive in global trade. Bringing these costs down will help exporters sell more and increase the country’s share in international business.

Nitin Gadkari shared this vision while addressing an event in New Delhi. The event was special because Prime Minister Narendra Modi inaugurated two massive road projects worth nearly ₹11,000 crore. These are the Delhi section of the Dwarka Expressway and the Urban Extension Road-II (UER-II). Both projects are expected to change the face of transportation in Delhi and its surrounding regions.

Dwarka Expressway – Delhi Section

The first project inaugurated was the 10.1-kilometre Delhi section of the Dwarka Expressway. This road has been built at a cost of ₹5,360 crore. It is not just an ordinary road but a modern expressway designed to connect different parts of the city smoothly.

• The expressway will provide direct connectivity to several important places:

• Yashobhoomi Convention Centre which is fast becoming a hub for big national and international events.

• The Delhi Metro’s Blue and Orange lines make travel more convenient for people who use both road and metro transport.

• The upcoming Bijwasan railway station will improve rail connectivity in the region.

• The Dwarka cluster bus depot helps commuters switch between bus and road transport easily.

This expressway is part of a larger project. Earlier, in March 2024, Prime Minister Modi had inaugurated the Haryana section of the same expressway. Together, the Delhi and Haryana parts will create a strong and smooth travel corridor that reduces congestion and improves the flow of vehicles between the two regions.

Urban Extension Road-II (UER-II)

The second project launched was the Alipur–Dichaon Kalan stretch of UER-II along with new road links to Bahadurgarh and Sonipat. This project has been developed at a cost of ₹5,580 crore.

UER-II is considered a very important road for Delhi because it will act as a bypass for the city’s busy areas. It will help reduce traffic on:

• Delhi’s Inner Ring Road

• The Outer Ring Road

• Busy crossings such as Mukarba Chowk. Dhaula Kuan and NH-09

At present, these roads face heavy jams every day, especially during office hours. Trucks, buses, and cars get stuck for long hours, wasting fuel and time. UER-II will provide an alternative route, allowing heavy vehicles to bypass crowded parts of the city. This will also reduce air pollution in central Delhi.

Another major benefit is that the new road will improve industrial connectivity. The National Capital Region (NCR) has many factories and industrial areas in places like Sonipat, Bahadurgarh, and Gurugram. With UER-II, goods can be moved faster from these areas to Delhi and beyond. This will not only help industries save money but also make deliveries quicker.

Impact on Delhi Traffic

One of the biggest problems in Delhi is traffic congestion. Lakhs of vehicles enter and exit the city every day. Gadkari said that with these new highways, the people of Delhi and NCR will get major relief.

He even went on to say, If I say that the problem of 50 per cent of traffic jams in Delhi will be reduced due to these highways, I think it will not be surprising. This is a big statement but it shows the government’s confidence in these projects.

• If traffic jams are reduced, the benefits will be many:

• Less pollution, because vehicles will spend less time idling.

• Faster travel times which means people can reach offices, schools, and other places quickly.

• Better road safety since smoother roads and less crowding lead to fewer accidents.

• Lower transport costs as trucks and buses can make more trips in less time.

Why Reducing Logistics Cost Matters

When goods are produced in factories, they need to be transported to markets, ports, and customers. This whole system of movement is called logistics. In India, because of traffic jams, poor road conditions in some areas, and longer routes, logistics costs are higher.

Let us take an example. If a company in Gurugram wants to export clothes to Europe, the products must first be taken by road to a port like Mumbai or Mundra. If the roads are clogged with traffic, it takes more time and fuel. This increases costs. Higher costs mean Indian clothes are sold at a higher price in Europe compared to Chinese clothes, which reach ports faster and cheaply.

This is why Gadkari’s announcement is so important. If logistics costs in India come down to single digits (less than 10 per cent), Indian exporters will be able to compete directly with Chinese and European businesses.

For farmers, lower logistics cost means their crops can be transported quickly to markets without much wastage. For industries, it means raw materials arrive faster and finished products reach customers on time. For ordinary people, it means cheaper goods because transport costs add to the final price of everything we buy.

Government’s Vision for 2026

The government has been working on multiple highway and expressway projects across the country. Under the Bharatmala project, thousands of kilometres of new highways are being built. The focus is on expressways which allow vehicles to move at high speeds without interruptions.

Along with this, multi-modal transport systems are being planned. This means roads, railways, metro, and bus networks will be connected in such a way that people and goods can switch easily between them. For example, someone can bring goods by truck, load them onto a train, and then deliver them by road again—all without wasting much time.

The National Logistics Policy, launched by Prime Minister Modi in 2022, is also part of this vision. The policy focuses on:

Building logistics parks in different states.

• Using digital platforms to track and manage the movement of goods.

• Encouraging green transport to reduce pollution.

• By 2026, the goal is clear: bring logistics cost below 10 per cent and make India a strong competitor in global trade.

Comparison with Other Countries

China: Logistics cost is around 8 per cent. This is one of the reasons why Chinese goods are cheaper in international markets. China has invested heavily in highways, railways, and ports.

United States and Europe: Their logistics costs are around 12 per cent. They also have advanced infrastructure and efficient transport systems.

India: Currently at 14–16 per cent, but aiming to reach single digits by 2026.

If India achieves this, it will not only help exporters but also attract more foreign investment. Companies from around the world will prefer to set up factories in India because it will be easier and cheaper to move goods.

A Step Towards Economic Growth

Reducing logistics costs is not just about saving money on transport. It is also about creating jobs, boosting industries, and improving the daily lives of people. When big highways are built, new businesses like restaurants, petrol pumps, and warehouses come up along the route. This creates employment for local people.

Better roads also mean rural areas get connected to cities. Farmers in villages can sell their crops in big city markets without worrying about wastage. Tourists can travel easily, boosting the tourism industry.

Overall, the improvement in transport infrastructure is a big step towards making India a $5 trillion economy in the coming years.

India is moving towards a future where transport will be faster, smoother, and cheaper. With projects like the Dwarka Expressway and UER-II, Delhi and NCR are already seeing major changes. The announcement by Nitin Gadkari that logistics costs will fall to single digits by 2026 gives hope to exporters, industries, farmers, and common citizens.

If these plans succeed, India will not only solve its traffic and transport problems but also become a strong competitor in global trade. This will make goods cheaper, exports stronger, and the country’s economy more powerful.

Nitin Gadkari