Union Minister for Road Transport and Highways, Nitin Gadkari, recently announced that India’s road network is on track to become better than that of the United States within the next two years. Speaking at an event on March 25, 2025, Gadkari expressed optimism about the infrastructure advancements that will transform India's transportation sector, making it more efficient and competitive.

India’s Road Network to Outperform US in 2 Years

Nitin Gadkari highlighted the impressive progress in India’s road infrastructure, claiming that the changes over the next two years will be so significant that India's highway network will surpass that of the United States. "I don't think there is any problem in the road sector. The changes this year and next year will be so significant that earlier I used to say our highway road network would match that of the US, but now I say that within two years, our highway network will be even better than the United States," Gadkari said.

The Union Minister emphasized the remarkable developments in the highway sector, including faster connectivity between major cities such as Delhi, Dehradun, Jaipur, and Bengaluru. He noted that the distance between these cities would be drastically reduced due to advanced infrastructure and improved road networks.

Focus on Quality and Competitiveness in Auto Sector

Addressing concerns about international competition in India’s automobile sector, Gadkari stressed that Indian transport manufacturers are more quality-centric than cost-centric. He expressed confidence that Indian car manufacturers would continue to produce high-quality vehicles and offer them at competitive prices. Referring to Tesla’s entry into India, he remarked, "It is an open market; whoever has the power, come and make it and compete in the prices."

Gadkari reiterated his commitment to reducing logistics costs, stating that the current logistics cost in India stands at 14-16 percent, which will soon be brought down to single digits. This reduction will make India more competitive globally.

Vehicle Scrapping Policy to Reduce Auto Component Prices by 30 Percent

Gadkari announced that the Vehicle Scrapping Policy will significantly impact the auto component industry, reducing prices by approximately 30 percent. He explained that the policy is aimed at removing old and polluting vehicles from Indian roads, thereby boosting the demand for new vehicles while lowering input costs.

"We brought the scrapping policy because of which prices of auto components will be reduced by 30 percent," said Gadkari, emphasizing that this price reduction will benefit consumers and boost the automobile industry.

India to Become Global Hub for EV Adoption and Battery Manufacturing

Gadkari also expressed optimism about India becoming a global leader in electric vehicle (EV) adoption and battery manufacturing. He stated that India will surpass the US in EV adoption and manufacturing within the next five years, owing to the government’s proactive measures to improve charging infrastructure across the country.

The Union Minister mentioned that the prices of lithium-ion batteries have decreased in India, making EVs more affordable. He further disclosed that major Indian corporations such as the Adani Group and Tata Group are set to mass-produce lithium-ion batteries to meet growing domestic demand.

Discovery of Large Lithium Reserves in India

Gadkari also highlighted the discovery of large lithium reserves in Jammu and Kashmir, which account for 6 percent of the world's total lithium reserves. He emphasized that these reserves would be sufficient to manufacture crores of lithium-ion batteries, strengthening India's position as a key player in the global EV battery market.

Indian Automobile Industry: Fastest Growing in the World

Gadkari pointed out that India’s automobile industry is currently the third-largest in the world, having surpassed Japan. He praised the sector’s rapid growth and expressed confidence that the Vehicle Scrapping Policy and increased EV adoption would further propel India’s automobile industry to greater heights.

Logistics Cost to be Reduced to Single Digits

Gadkari emphasized his goal of bringing down logistics costs to single digits in the coming years. "Our goal is to bring logistics costs down to single digits, making India globally competitive," he said. He also announced plans to build 60 kilometers of road network per day, a target that underscores the government's commitment to enhancing India’s infrastructure landscape.

Tesla’s Entry into India: Open Market with Competitive Pricing

When asked about Tesla's entry into India, Gadkari maintained that the Indian market is open to all players who can offer high-quality products at competitive prices. He invited global automobile manufacturers to compete and thrive in India’s booming automotive sector.

Impact of EV Policy on Environment and Economy

Gadkari reiterated that the government's initiatives to promote EV adoption and improve the charging infrastructure will have a positive impact on the environment while reducing India’s dependency on fossil fuels. "The demand for EVs will grow as the government takes various steps to improve the charging infrastructure in cities and on highways," he said.

Future Outlook: Transforming India’s Road Network and Auto Sector

With the government’s aggressive push towards improving road infrastructure, enhancing EV adoption, and reducing logistics costs, India is on the path to becoming a global leader in transportation and automobile manufacturing. Gadkari’s vision of transforming India’s road network and making it better than the United States within two years underscores the government’s commitment to fostering sustainable growth and improving the quality of life for Indian citizens.

As India continues to make strides in infrastructure and technology, the future of the Indian road network and automobile sector looks brighter than ever, paving the way for economic growth and global competitiveness.

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