Centre working to reduce logistics cost to GDP to 7.5% in 5 years, says Amit Shah

Union Home Minister Amit Shah on Tuesday said that the government is working to bring down logistics cost to GDP to 7.5 per cent from the current 13 per cent.

Addressing the annual session of Assocham, Shah said that without the development of the country's infrastructure and reduction of logistics costs, development was not possible, PTI reported.

Making a comparison, Shah said that the logistics cost in India is 13 per cent to the GDP as compared eight per cent in the rest of the world, making it difficult for Indian exports to compete globally.

"We will have to remove the eight per cent and 13 per cent gap. We have formulated a framework for the next five years. I can assure you that we will reach 7.5 per cent logistics cost in the next five years," he said, as per the news agency.

Shah also highlighted that the Narendra Modi government has made a plan of Rs 100 lakh crore investment in infrastructure with some mega projects such as the doubling of railway lines, their widening, dedicated freight corridors from Mumbai to Delhi and Amritsar to Kolkata besides 11 other industrial corridors.

Citing other achievements in the infrastructure sector through major schemes, he added that the government has set a target to bring down logistics costs below the national average by 2028 to make exports globally competitive.

The minister also expressed confidence that the Modi government has laid a strong foundation for making India a developed nation by 2047 and a $5 trillion economy by 2022.

Meanwhile, he also took a dig at former Union Finance Minister P Chidambaram and said that when PM Modi was giving details of the Digital India scheme, the Congress leader questioned how will small amounts be paid to a street vendor, whether villages will have electricity and broadband to enable those transactions.

Elaborating further, he said that now UPI is being used by almost every business.

"UPI contributed 52 per cent of the 8,840 crore digital transactions in 2022 which comes to Rs 1.26 lakh crore," Shah said on Tuesday. He further pointed that broadband connections were 6.1 crore in 2014 and increased to 82 crore in September 2022.

At the annual Assocham session, Shah also said that the government never took decisions considering the vote bank politics, else GST would not have been implemented.

"There is an army of people who ridiculed GST as Gabbar Singh Tax, but we never cared about that," he said.

Shah also credited Modi for giving a humane face to drab GDP numbers through social schemes which is a first in the world.

(With PTI inputs)

Also Read: EPFO hikes interest rate on employees' provident fund to 8.15% for 2022-23

Also Read: Former Sebi chairman UK Sinha appointed as NDTV non-executive chairman