Address of Shri Nitin Gadkari at 7th International Conference on Soaps Detergents and Cosmetics - ISDC 2025
The Indian economy is experiencing significant growth, which presents a great opportunity in the international market, particularly in exports. However, one of the most pressing challenges we face is the high logistics cost. In India, logistics costs range from 14% to 16%, compared to 8% in China and 12% in European countries and the USA.
Since the formation of our government under Prime Minister Narendra Modi, we have prioritized infrastructure development. The most critical components for infrastructure development are water, power, transport, and communication. As part of the Ministry of Road Transport, I am confident that with a robust road network and the adoption of alternative fuels and biofuels, we can significantly reduce logistics costs.
For instance, the Dwarka Expressway tunnel, which previously took 1 to 1.5 hours to traverse, is now undergoing improvements to reduce travel time. Similarly, with our upcoming express highways, travel times will drastically decrease: Delhi to Dehradun in two hours, Delhi to Jaipur in two hours, Delhi to Amritsar in four hours, Chennai to Bangalore in two hours, and Bangalore to Mysuru in one hour. Additionally, the Mumbai-Delhi corridor will enable travel between these cities within 12 hours by car. This development is especially beneficial for small-scale industries, as it will facilitate efficient and cost-effective transportation.
We are also focused on promoting alternative fuels such as electric vehicles, ethanol, methanol, biodiesel, bio-LNG, and CNG. Currently, India spends approximately ₹22 lakh crore on fossil fuel imports. By shifting to alternative and biofuels, we can reduce this dependency. For example, Toyota's Innova, which runs on 100% biofuel, demonstrates how ethanol derived from sugarcane juice, corn, broken rice, and biomass can power vehicles efficiently. Additionally, our projects in Punjab and Haryana are producing ethanol from rice straw, generating one lakh liters of ethanol per day, along with 150 tons of biogas and 78,000 tons of sustainable aviation fuel annually.
Agricultural diversification towards energy and power is a key strategy for our future. Green hydrogen is another promising avenue. I personally use the Toyota Mirai, a hydrogen-powered car; in Japanese, 'Mirai' means 'future,' symbolizing our commitment to sustainable energy solutions. By leveraging good roads and alternative fuels, we are set to reduce logistics costs from 16% to 9% within the next two years. This will greatly enhance our competitiveness in the global market, particularly amid ongoing discussions in the USA regarding import duties.
Technological advancements are crucial. The cost of petroleum-based byproducts is beyond our control, making it imperative to find sustainable alternatives. We are producing biodiesel from edible and non-edible oils, as well as agricultural residues like Mahua, Sal, and Karanj. Sugar molecules are being used to manufacture detergents, face washes, hair care products, and dishwashing liquids, demonstrating the potential of indigenous raw materials.
Four key factors drive industry success: proven technology, economic viability, availability of raw materials, and marketability of finished products. Reducing production costs while maintaining quality is essential. Multinational companies have the advantage of economies of scale, but with high-quality products, innovative packaging, and timely delivery, we can compete effectively.
Innovation and entrepreneurship, supported by science, technology, research, and skills, are the pillars of knowledge. Converting knowledge into wealth is the future. To achieve success, we must focus on reducing imports and increasing exports. The government is committed to fostering an export-driven economy through cost-effective production and quality improvements.
A thriving economy generates employment opportunities. Small industries, MSMEs, handlooms, and handicrafts are vital contributors to job creation. Expanding these sectors will lead to further employment generation. I am pleased that this international conference is providing a platform to discuss strategies for boosting exports through the adoption of appropriate technologies, alternative raw materials, and cost-effective logistics.
I always say that there are two types of people: those who convert problems into opportunities and those who turn opportunities into problems. Let us embrace challenges as opportunities. Instead of seeking tax reductions, let us focus on reducing production costs through innovation. While taxation is necessary for governance and welfare, businesses must also take the lead in optimizing efficiency.
Reducing power costs through renewable sources like solar energy is another key step. With technology constantly evolving, industries must anticipate future trends and plan for the next 25 to 50 years. The key to success lies in futuristic vision, planning, and technology, ensuring high quality at competitive costs.
Your industry plays a crucial role in India's growth and job creation. Many small-scale enterprises, particularly in rural areas, manufacture essential products such as cosmetics and soaps. Companies utilizing raw materials from forest resources also have immense potential. For instance, Mira Kar, a company leveraging forest-based materials, has successfully developed high-quality products. Research and innovation in formulation, cost reduction, and quality enhancement will enable us to capture international markets.
I extend my gratitude and best wishes to all of you. The Government of India is committed to supporting your endeavors, and we will do our best to assist you in your growth and success.
Thank you and Namaskar!
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