Freight will now be cheaper in the country! Modi government aims to reduce logistics cost to 9 percent by 2024

New Delhi. The Modi government has set a target of bringing down the logistics cost in the country to 9 percent by the year 2024. On Tuesday, Union Road Transport and Highways Minister Nitin Gadkari said, ‘The high cost of logistics is a big challenge before the industry and business of the country. Now it is 16 percent. We have set a target to bring it down to nine per cent by the end of 2024. Let us tell you that in order to reduce the cost of Goods Transporting in the country, the Modi Government has come up with a new National Logistics Policy. Its purpose is to promote seamless movement of products as well as reduce the cost of freight.

Nitin Gadkari has said that the aim of bringing the new policy is to reduce it from the current 16 per cent of GDP to below 8 per cent and generate employment. If the freight will be less, then it will have a direct effect on the prices of all the goods and the prices will be less. This new policy has been brought by the Modi government to bring down the logistics cost in the country to match China, America and European countries.

This is the purpose of bringing a new policy
For this, after waterways, railways and roads, the Modi government is now working towards making the air route a popular means. The Modi government is developing air services and airports in many cities of the country in the next five years. Now the exercise is going on to reduce the cost of air cargo for freight.

What will be the role of the Ministry of National Highways
Currently, the logistics cost in the country is 16 per cent of the gross domestic product (GDP). It is 10 percent in China and 8 percent in America and Europe. In the coming days, the role of Ministry of National Highways as well as Ministry of Civil Aviation and Ministry of Urban Development is going to be important in this dream project of PM Modi.

A single logistics law will prove to be very effective for all modes of government goods transport.

How effective is the logistic law
Significantly, the Ministry of Road Transport and Highways was working on this for the last several years. Road Transport and Highways Minister Nitin Gadkari has been saying on several occasions that the single logistics law for all modes of goods transport will prove to be very effective. Now with the coming of a law for all logistic mediums, multi-level transport will be facilitated in true sense.

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Let us tell you that India currently ranks 44th in the world in logistics cost. India has now become the fifth largest economy in the world. In such a situation, it will be easy to send goods by air, rail, road and sea from a single portal. The government agency will now form a logistics system with the help of shipping companies, IT related stakeholders, banks, container and insurance companies.

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Tags: Goods trains, Indian Railways, Modi government, Union Minister Nitin Gadkari