Higher logistics cost in India is one of the biggest impediments in export growth and country's economic development, and efforts are on to reduce it, Union Minister Nitin Gadkari today said.
"Reducing logistics cost can boost exports 1.5 times in the country besides leading to faster economic development," Road Transport and Highways Minister Gadkari said addressing the second Smart Transportation Infra Summit & Expo organised by the PHD Chamber of Commerce and Industry here today.
He said the current logistics cost in the country is as high as 18 per cent which is much higher than China, Europe etc.
"The current logistics cost is 18 per cent in India and if reduced to the level of 10 per cent, the economic growth will be propelled", Gadkari said.
Assserting the need and for augmenting infrastructure, he said the government is in the process of developing it and smart solutions like waterways are also there which would be cost effective and pollution free.
He also said that the government is contemplating to reduce import duty on used cooking oil to be used in bio-diesel.
"We have requested commerce ministry to reduce import duty on cooking oil," he said.
He emphasised the use of water transport, electric transport, bio CNG, ethanol, bio diesel and petrol in order of priority for smart transportation.
Mahesh Gupta, President, PHD Chamber appreciated the recent efforts of the government in modernisation and upgradation of the transport and road infrastructure.
