Union Minister Nitin Gadkari stated that the government's goal is to position India's automobile industry as the leading sector globally within the next five years.

Releasing a report created by The Express Industry Council of India (EICI) and KPMG, Gadkari stated that the outlook for the express industry in the country is very promising.

"The Indian automobile industry is currently valued at Rs 22 lakh crore my objective is to position India's automobile sector as the top in the world within the next five years," Gadkari stated.

The minister also mentioned that when he assumed leadership of the transport ministry in 2014, the automobile industry's value was Rs 7.5 lakh crore, and currently, it stands at Rs 22 lakh crore.

Currently, the US automobile industry's value is Rs 78 lakh crore, with China at Rs 47 lakh crore and India at Rs 22 lakh crore.

Gadkari stated that Prime Minister Narendra Modi's vision is to position India as the third largest economy globally, with the logistics sector being crucial for realizing this vision.

Gadkari mentioned that until recently, the logistics expenses in India accounted for approximately 16 percent of the gross domestic product (GDP).

"I would like to convey that, based on a collaborative survey by IIM and IIT, we have reduced this (logistics cost) to 10 percent."

"Gadkari stated that this is a significant achievement and we are targeting to reduce logistics costs to single digits shortly."

The minister attributed the decrease in logistics expenses to significant investments in expressways and economic corridors.

Also Read: Can Tesla's Entry Accelerate EV Targets of India?

The report named 'Powering India's Economy, Connecting Business and Markets' states that the express sector generates $ 1-1.5 billion in GST and $ 650 million in customs revenue each year.

"The express industry sector is anticipated to grow from $ 9 billion in FY25 to $ 18-22 billion by 2030, resulting in 6.5-7.5 million jobs," it stated.

The report highlighted that the express sector has evolved from a logistics operation to a vital service provider.

Also Read: AI Insurgence Perforating New Chapter in Academia

Domestic express represents approximately 70 percent of the overall market, estimated at $ 6.3-6.5 billion, with surface express making the largest contribution, it mentioned.

According to reports, the international express segment, accounting for roughly 30 percent, managed 19.5 million shipments totalling around 1, 52,300 tonnes in FY24.