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India Cuts Logistics Costs to 10% of GDP With Digital Tolling and Hydrogen Pilot

Officials say these initiatives will boost MSME competitiveness alongside carving a path to net energy-export status.

Nitin Gadkari.
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Overview

  • India’s logistics costs have fallen to around 10% of GDP from 16% over the past decade, driven by expressway expansion, economic corridors and port connectivity upgrades.
  • Digital tolling has replaced manual booths nationwide through FASTag technology to streamline traffic flow and reduce congestion.
  • A Rs 600 crore hydrogen highway pilot project is under way to establish clean-fuel refuelling stations across ten major routes.
  • Union Minister Nitin Gadkari announced a target to lower logistics costs further to 9% of GDP by December under the PM Gati Shakti National Master Plan.
  • The government aims to become a net energy exporter within six to seven years through expanded green fuel adoption and infrastructure investment.