Govt working to reduce logistics cost to 9% of GDP: Nitin Gadkari

New Delhi: The government is working to bring down logistics cost to 9 per cent of GDP in the next three years from the current 14-16 per cent, Union Minister Nitin Gadkari said on Wednesday.

Speaking at an event organised by industry chamber CII, the union road, transport and highways minister further said India's exports will increase when its logistics cost will come down to single digit.

The government is going by certain estimates which suggest that logistics cost in India is in double digits. The government has rolled out a national logistics policy and PM Gati Shakti initiative to boost competitiveness of industry and cut logistics costs.

Earlier this year, the commerce and industry ministry had said that a task force will be set up for formulating a framework to determine logistics costs in the country.

The task force members would include representatives from NITI Aayog, Ministry of Statistics and Programme Implementation (MOSPI), National Council of Applied Economic Research (NCAER), academic experts and other stakeholders.

Gadkari further said his ministry has proposals for 260 ropeways and funicular railway projects worth Rs 1.3 lakh crore.

The minister also said the road ministry has identified land for 500 bus depots and sought investments from top industrialists for developing those bus depots. According to Gadkari, India needs 2 lakh electric buses.