High logistical costs in India, which are the biggest hindrance for Indian businesses on the global level, are expected to be reduced substantially under the 'Sagarmala Project' of streamlining port and transportation logistics, Shipping Minister Nitin Gadkari announced here on Friday.
"The logistic cost in India is currently 18 percent, while in China it is 8 percent. Under the 'Sagarmala Project', we aim to reduce it to 10 percent," he said on the second day of the ongoing three-day Maritime India Summit here.
"With the launch of Sagarmala Project, we have opened our cards. Global investors can now choose and pick from the sector they want to invest in," he added.
Gadkari added that a multi-pronged programme to improve hinterland connectivity can resolve the acute logistical problems faced by the transport sectors.
On this front, there are proposals for investments of around Rs.400,000 crore to improve rail-road connectivity for container movements and the ministries of railway and surface transport are collaborating to improve freight transportation, the minister said.
The government also plans to move all the warehouses from cities to outskirts along the 300 ring-roads in all such cities.
"Traffic congestion is a major issue when comes to transport goods form godowns to cities to railway yards or docks. We want to move these godowns (warehouses) close to ring roads for ease of transportation," Gadkari said.