Union Minister for Road Transport and Highways, Nitin Gadkari, on Thursday reiterated the government’s ambitious target of achieving a USD 5 trillion economy by 2027, under the leadership of Prime Minister Narendra Modi, while outlining a vision to transform India into a developed nation by 2047. Speaking at the 120th Annual Session of the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, Gadkari emphasized the importance of ethics, economy, and ecology as the three pillars guiding India’s development.
Highlighting the automobile sector’s growth, Gadkari noted that India’s auto industry, valued at ₹14 lakh crore in 2014 when the current government assumed office, has now surged to ₹22 lakh crore, overtaking Japan to become the world’s third-largest automobile market. He expressed optimism that with advancements in research, innovation, and the adoption of alternative fuels like ethanol, methanol, bio-diesel, LNG, electric, and hydrogen, India could emerge as the global leader in automobile manufacturing within five years.
The minister underscored the economic benefits of alternative fuels, stating that their adoption could significantly reduce India’s ₹22 lakh crore annual crude oil imports. He highlighted how ethanol production reforms have boosted maize prices, adding ₹45,000 crore to farmers’ incomes, particularly in Uttar Pradesh and Bihar, while fostering higher growth, purchasing power, and employment through reduced imports and increased domestic production.
Gadkari also showcased innovations in logistics and infrastructure, citing the recent launch of electric truck battery swapping in Sonipat as a cost-effective alternative to diesel, with electricity costs per kilometre being significantly lower. He noted that India’s logistics costs, previously at 16% of GDP, have been reduced and are expected to drop to single digits, around 9%, by the end of 2025, due to infrastructure improvements.
Emphasizing sustainable development, Gadkari highlighted innovative projects such as converting Mathura’s sewage sludge into bioenergy and using 80 lakh tonnes of legacy waste for road construction. He stressed the importance of balanced growth across agriculture, manufacturing, and services sectors, urging industry to prioritize rural and agricultural development to curb migration and strengthen the economy.
The minister underscored infrastructure development as a key driver of economic growth, contributing ₹321 to GDP for every ₹100 invested in national highways. He highlighted financial innovations like the Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT) models, which have mobilized significant funds through capital markets. The first InvIT bond issue was oversubscribed seven times within hours, reflecting strong investor confidence.
Gadkari outlined major infrastructure projects, including 25 Greenfield Expressways connecting key cities and ports, new tunnels like the Zojila Tunnel, and expressways such as the Delhi-Katra-Amritsar corridor to enhance connectivity and reduce travel time. He highlighted tourism-focused initiatives like the Buddhist Circuit and ropeways in Kedarnath, aimed at boosting religious tourism and generating revenue through public-private partnerships.
Gadkari also presented the PHDCCI Business Practices & Awards 2025, recognizing excellence in industry.