Why Infrastructure Is Key to India's Growth Story: Nitin Gadkari Explains At IEC 2025 With A US, China Example

Union Road Transport and Highways Minister Nitin Gadkari on Wednesday spoke about the central role of infrastructure in driving India’s economic growth, stating that sustained investment in roads, transport

and logistics is essential for job creation and poverty eradication. Speaking at the India Economic Conclave (IEC) 2025, Gadkari said infrastructure development forms the foundation of industrial and trade expansion.“For the growth of any country, infrastructure is extremely important. Roads, water, power, transport and communication, without developing this infrastructure, we can't get capital investment in industry and trade and business. And without investment, we cannot create jobs. And without jobs, we cannot eradicate the poverty," he said, noting that infrastructure development has been accorded the highest priority by Prime Minister Narendra Modi.Gadkari said the government no longer faces resource constraints in building highways and transport networks, citing successful road monetisation and innovative financing models. “Today, in my experience, we don't have any resources problem because the way in which we are monetising the road and developing different type of models, DOT, hybrid NUT, NVID, and DOT, there is no problem about resources because the traffic density is very high," he said.

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'Lower logistics costs could boost India’s exports by nearly 1.5%': Gadkari

Highlighting the impact of infrastructure on exports and GDP growth, Gadkari pointed to a sharp reduction in India’s logistics costs. He said India’s logistics cost earlier stood at around 16% to GDP, significantly higher than China’s 8% and the 12% average of the US and European countries.“In India, previously it was 16%. But the latest study from IIM Bangalore and IIT Kanpur and IIT Chennai, the report indicates that our logistic cost in the road is reduced by 6%. So now from 16 to 10, and the report was three, four months before. So today I'm confident that this logistic cost is a single digit at 9%,” he said.The minister said lower logistics costs could boost India’s exports by nearly 1.5%, contributing to economic growth and employment generation. “This will not only create wealth but also create more jobs,” he added.Emphasising the broader impact of road infrastructure, Gadkari said improved highways are transforming multiple sectors. "So by making good roads, not only we are developing trade, business, and industry, but we are developing tourism, and we are also developing good agriculture also. So these are the effects which are very important for the development of our country," he said.

https://www.youtube.com/watch?v=d2qMBkuVSxs

About IEC 2025

The two-day event features over 40 sessions, with participation from Union ministers, policymakers, members of the judiciary, economists, technologists, defence sector voices, investors and industry leaders. Discussions will centre on how India can navigate a rapidly changing global landscape and stake its claim as a leading force in the world’s fastest-growing large economy.IEC 2025 is presented by IDFC FIRST Bank, with Amrita Vishwa Vidyapeetham as Knowledge Partner and the World Gold Council as Gold Investment Partner. Other partners include Radico (Celebration Partner), Axis Max Life Insurance (Insurance Partner), Adani (Associate Partner), the Government of Uttar Pradesh (Growth Partner), and NBCC (Infrastructure Partner).