Gadkari calls for 'innovative models of transport' to lower logistics cost

Washington D.C. (United States), July 11 (ANI): Asserting that the high cost of logistics was one of the main impediments to national development and the success of the government's ambitious 'Make in India' initiative, Union Road Transport and Highways Minister Nitin Gadkari on Monday said introducing 'innovative models of transport', which were cost effective and pollution-free, were the need of hour to reduce shipping costs.

Gadkari, who arrived on Sunday on a week- long official visit aimed at attracting Foreign Direct Investment (FDI) in the infrastructure sector, said the cost of logistics (of the total cost) accounted for 18 percent in India, whereas in China it was just around 8 percent and in European countries the cost was around 8-12 percent.

Stressing that such a situation was not good for the country, he said it was less expensive and complicated to take goods from Mumbai to London than from Mumbai to Delhi.

"This is the time for our country to accept innovative models of transport, reduce the cost. It should be cost effective and pollution free," Gadkari told ANI here.

"For the dream of Prime Minister of Make in India, it is very important that we have to reduce the (Logistics) cost. In India, the cost of logistics is 18 percent, whereas in China it is 8 %, in western and European countries it is around 8-12 percent," he added.

The minister further said his aim was to reduce logistic cost from 18 percent to 12 percent, adding, "it will help increase exports and create more employment potential in the country and add to the GDP."

Reports state that the minister would be looking to deepen the scope of Indo-US cooperation in innovative technologies, including improvement of highway development, road engineering, road safety and development of green fuels in the automobile sector and electric vehicles.

Gadkari said that the NDA Government's initiatives have been receiving a positive response from countries across the world, adding that he expects the same from the United States.

During his week-long visit, Gadkari is scheduled to visit Washington and Los Angeles, with in between stops in New York, St Louis and San Francisco.