Logistics cost will be reduced to boost growth, we have more than China, US and European countries: Nitin Gadkari

Union Road Transport Minister Nitin Gadkari said that the logistics cost in the country is higher than China, America and European countries and there is a need to bring it down. He said that for this, waterways will have to be made a popular means of transportation of passengers and goods. Gadkari further said that this will reduce the import cost of petrol and diesel. Right now it is Rs 16 lakh crore annually.

Waterways our first priority: Gadkari

In a program organized by Young Indians and Institute of Chartered Accountants on Friday evening, Gadkari said that our first priority is waterways, second railways, third roads and last air routes. The reduction in logistics cost will help in generating employment in the country.

The Union Minister said that the logistics cost in India is 16 per cent of the Gross Domestic Product (GDP) and it is very high. It is ten percent in China and eight percent in America and Europe. He said that there is a need to connect rail and road transport with waterways.

Gadkari said that more sustainable fuels like bio-diesel, bio-CNG will have to be used. He emphasized on more cultivation of sugarcane and bamboo, so that cheap fuels like ethanol and bio-ethanol can be produced. He said that this will also prevent pollution.

PM Modi launched the National Logistics Policy (NLP)

Let us tell you that Prime Minister Narendra Modi on Saturday launched the National Logistics Policy (NLP) at Vigyan Bhawan located in New Delhi. The objective of this policy is to help in smooth movement of goods and increase the competition in the industry. The scheme will focus on areas like re-engineering, digitization and multi-modal transport. The objective of this scheme is also to reduce the cost of logistics. The statement further said that it is very important to reduce the cost of logistics in India, so as to improve the competitiveness of Indian goods in the domestic market along with exports.

With the help of the policy, fast growth will also be supported after two years of the epidemic crisis. Due to this there will be other bottlenecks on the supply front. Under the new policy, the rules will also become easier. Apart from this, it will also help in reducing the cost of logistics and reduce oil prices.

(with language input)