Asserting that high costs of logistics affect India’s international trade prospectus, minister for road transport and highways and shipping Nitin Gadkari said on Thursday that the central government was trying to reduce the costs by developing waterways and ports.
He pointed out that India’s logistics cost is 18 per cent as compared to China’s 8-12 per cent and Europe’s 12 per cent.
“This is affecting our competitiveness in the global market. For taking any material from Mumbai to London or Mumbai to Dubai is easy and cheaper compared to taking it from Mumbai to Delhi. The government will give high priority to developing infrastructure, which would subsequently create employment and bring industrial development,” Gadkari told a gathering during the signing of an agreement between Mormugao Port Trust and Goa Sea Port Private for development of two berths.
“Sagarmala is a dream project for the country. Through it, we are expecting an investment of Rs 12 lakh crore,” he said. “Besides we are developing six major ports and an investment of Rs 8 lakh crore will go towards 27 industrial clusters,” he added.
He also announced the construction of four-lane cement-concrete highway connecting Mumbai and Goa. He claimed that upon completion of the construction work in 2018, it will only take six hours to travel from one state to the other.