World-class infrastructure key to India’s $5 trillion target, says Gadkari

New Delhi, August 26, 2025

Union Minister for Road Transport and Highways, Nitin Gadkari, declared that world-class infrastructure will play the most decisive role in transforming India into a $5 trillion economy. Speaking at the ET WLF 2025 conference, Gadkari emphasized that highways, ports, airports, and logistics corridors must advance at global standards to make India competitive.

India’s economic ambitions rest on strong infrastructure foundations. Gadkari highlighted that road networks, logistics systems, and sustainable transport will decide India’s growth pace. He explained that while India has made remarkable progress, the next phase requires faster execution, technological innovation, and private investment. He also noted that global economies with advanced infrastructure enjoy higher efficiency, lower costs, and stronger trade competitiveness.

World-class infrastructure central to economic progress

Gadkari explained that infrastructure drives nearly 30% of India’s GDP growth. Investments in roads, logistics, and digital systems trigger industrial expansion, export growth, and job creation. He highlighted that India has completed 1.5 lakh kilometers of highways, but improving quality, reducing travel time, and ensuring safety remain urgent.

He added that by building efficient logistics systems, India could reduce logistics costs from 14% to 8% of GDP, saving billions for industries.

Global comparisons and lessons for India

• The United States invests 2.4% of its GDP annually on transport infrastructure.
• China spends over 5% of GDP, enabling rapid industrialization and exports.
• India invests about 1.8%, which Gadkari said must increase for competitiveness.

According to him, learning from these nations, India must adopt global best practices while tailoring them to local needs.

Percentage-based impact on India’s growth

• 30% contribution to GDP: Infrastructure remains the backbone of economic expansion.
• 20% cost savings: Lower logistics costs will reduce product prices and boost exports.
• 50% faster trade: Faster movement of goods will strengthen India’s position in global supply chains.
• 40% cut in emissions: Electric highways and green projects will curb carbon output.
• 70% rural focus: Expanding last-mile connectivity will ensure inclusive development.

Green technology and sustainable transport

Gadkari outlined India’s shift towards green technology in infrastructure. He said that electric highways, hydrogen-based fuel, and renewable-powered logistics systems will cut dependence on fossil fuels. The adoption of 25% more efficient logistics through digital platforms could significantly reduce costs.

The minister also explained that the government plans to integrate solar and wind energy into highway projects, which could reduce operational emissions by nearly 40% over the next decade.

Private investment and transparency in world-class infrastructure

Private sector involvement is vital for financing large-scale projects. Gadkari highlighted that the government has created transparent policies to attract investors. He assured that 100% project clearances now happen online, reducing delays.

He invited foreign investors, explaining that global participation will help India access new technologies, construction techniques, and financial support for mega projects.

World-class infrastructure in rural and urban balance

India’s growth must balance urban mega projects with rural connectivity. Gadkari stated that while metros and expressways are critical for cities, 70% of Indians live in rural regions that need strong roads and digital links.

He emphasized that rural road development under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has already connected thousands of villages, but newer initiatives must ensure 100% village connectivity by 2030.

Digital infrastructure as growth multiplier

The minister stressed that digital infrastructure is as vital as roads and highways. He pointed out that 5G networks, fiber optics, and smart logistics could raise productivity by 15–20% across sectors. Digital monitoring of traffic and freight movement will cut delays and increase accountability.

India’s path to $5 trillion through infrastructure

Gadkari concluded that world-class infrastructure is India’s strongest weapon in achieving the $5 trillion economy goal. He explained that investment, innovation, and sustainability must work together to lower costs, create jobs, and ensure inclusive growth.

With a clear roadmap, strong policies, and investor participation, Gadkari believes India can achieve world-class infrastructure by the end of this decade. He assured that these projects will not only transform India’s economy but also improve the daily lives of its citizens.

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