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India's logistics cost projected to decline to 9% by 2025

05 Aug 2025

Improved road infrastructure has brought logistics costs down from 16 percent to 10 percent and is projected to reach 9 percent by December 2025, according to an official release.

“This reduction is expected to double exports and boost employment. The length of National Highways under NHAI has increased by 120 percent—from 4,000 km in 2014 to 8,700 km in 2025,” said Nitin Gadkari, Union Minister of Road Transport & Highways.

The minister was speaking during the inaugurated of 29 National Highway projects covering 272 km, with an investment of over Rs 5,233 crore.

“These projects are designed to eliminate accident-prone black spots and railway crossings, reduce transportation costs, strengthen last-mile connectivity in rural and tribal areas, and decongest key urban centres such as Tirupati, Nellore, and Rayachoty—thereby positioning Andhra Pradesh at the forefront of India’s growth story,” Gadkari said.

The Madanapalle to Pileru stretch of NH-71 has been transformed into a modern 4-lane corridor spanning 56 kms, constructed at a cost of Rs 1,994 Cr. This significant upgrade includes 9 flyovers, a rail overbridge, 19 major bridges, 5 vehicular underpasses, and 10 local underpasses.

Similarly, the Kurnool to Mandlem section of NH-340C has been upgraded to a 4-lane road with paved shoulders over 31 kms, featuring one flyover, 4 viaducts, 3 local underpasses, and a minor underpass, at a cost of Rs 858 crore.

Alongside these developments, foundation stones were being laid for 27 additional projects aimed at enhancing connectivity across Andhra Pradesh.