Gadkari Outlines Vision for $5 Trillion Economy, Green Growth at PHDCCI Meet

Union Minister for Road Transport and Highways Shri Nitin Gadkari delivered a visionary address at the 120th Annual Session of the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, emphasizing the government’s mission to transform India into a USD 5 trillion economy by 2027 and a developed nation by 2047 under the leadership of Prime Minister Shri Narendra Modi.

Expressing gratitude to all stakeholders contributing to India’s rapid growth, Shri Gadkari highlighted that “Ethics, Economy, and Ecology” must form the three foundational pillars of India’s development journey. He stressed that progress should not be measured by infrastructure or industry alone, but also by the nation’s moral compass, environmental consciousness, and social responsibility.

Three Pillars for National Development: Ethics, Economy, and Ecology

The Minister underscored that ethical governance and value-based entrepreneurship are indispensable to building a sustainable and inclusive economy. “Ethical values are essential to maintain a healthy social and family system,” he said, calling for integrated thinking, coordination, and cooperation among all sectors of society.

Gadkari emphasized that development must balance industrial progress with environmental protection, stating that “economic growth cannot come at the cost of ecology.” He urged businesses to adopt sustainable technologies, green fuels, and circular economy practices, ensuring India’s growth story aligns with global sustainability goals.

India’s Automobile Revolution: From Seventh to Third in the World

Highlighting India’s transformation in the automobile sector, Shri Gadkari said that when the government assumed office in 2014, the industry ranked seventh globally with a valuation of ₹14 lakh crore. Today, India has surpassed Japan to become the world’s third-largest automobile market with an industry size of ₹22 lakh crore.

He expressed confidence that India would emerge as the world’s leading automobile manufacturing hub within the next five years through advancements in research, innovation, and adoption of alternative fuels such as ethanol, methanol, biodiesel, LNG, electric, and hydrogen fuels.

“The future of India’s mobility lies in green technology,” he said. “With biofuels, electric vehicles, and hydrogen-based mobility, India can become not just self-reliant but a global leader in sustainable transportation.”

Alternative Fuels: Cutting Imports and Empowering Farmers

The Minister emphasized that reducing dependency on imported crude oil—worth ₹22 lakh crore annually—is one of India’s biggest economic priorities. He explained that reforms in ethanol production policy have created a robust domestic biofuel ecosystem, benefiting both the environment and rural economy.

By linking ethanol production to maize and sugarcane farming, farmers in Uttar Pradesh and Bihar have gained ₹45,000 crore in additional income, he said. “The ethanol revolution is not just a fuel policy—it’s an agricultural prosperity policy,” Gadkari remarked.

He also noted that increased domestic fuel production and reduced imports will enhance India’s foreign exchange reserves, stimulate employment generation, and strengthen rural purchasing power—a critical component of inclusive growth.

Driving Efficiency: Lower Logistics Costs Through Green Infrastructure

Shri Gadkari highlighted that the government’s continuous efforts to improve road and logistics infrastructure have already reduced logistics costs from 16% of GDP to around 10%, with a target to reach single digits (9%) by the end of 2025.

He cited the example of electric truck battery swapping in Sonipat, noting that electric mobility offers a cost advantage of up to 60% compared to diesel. The shift to electric transport, he said, would cut logistics expenses, make exports more competitive, and enhance India’s position as a global manufacturing hub.

“Efficient logistics are the backbone of a strong economy,” Gadkari said. “Every rupee saved in logistics is a rupee gained in competitiveness.”

Innovation and Circular Economy: Turning Waste into Wealth

Championing the concept of waste-to-wealth, the Minister reaffirmed that “no material is waste and no person is waste.” He cited innovative examples from Mathura, where sewage sludge is converted into bioenergy, and several regions where legacy waste has been reused for road construction.

He informed that over 80 lakh tonnes of waste have already been utilized in road projects, significantly reducing landfill burden and promoting environmental sustainability. These efforts, he said, reflect the government’s commitment to a circular economy, transforming challenges into opportunities for green growth.

Balanced Growth: Strengthening Agriculture, Industry, and Services

Calling for equitable development across sectors, Shri Gadkari emphasized that the agriculture sector must grow alongside manufacturing and services to ensure rural prosperity.

He urged industries to prioritize rural and agricultural investments, helping to reduce migration, boost employment, and strengthen the rural economy. “Balanced growth is essential for an equitable and resilient India,” he said.

He highlighted the success of cooperative models, value addition in agriculture, and agro-based industries in increasing farmer incomes, noting that agribusiness can be the next major driver of GDP growth.

Infrastructure: The Backbone of India’s Economic Growth

Shri Gadkari reiterated that infrastructure development is the backbone of the Indian economy, generating employment, revenue, and driving GDP growth. He pointed out that an investment of ₹100 in highways contributes ₹321 to the national GDP.

He discussed key financing models—Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT)—through which the Ministry has successfully mobilized private capital. The first InvIT bond issue, he said, was oversubscribed seven times within hours, showcasing investor confidence in India’s infrastructure growth.

Gadkari emphasized the need for decentralized wealth creation, encouraging participation from small investors and workers in national prosperity. “When prosperity reaches the grassroots, the foundation of the economy becomes unshakable,” he asserted.

Green Corridors and Tourism Infrastructure

The Minister also provided updates on major national infrastructure projects, including the construction of 25 Greenfield Expressways connecting key industrial and port cities. Notable projects include the Delhi-Katra-Amritsar Expressway and the Zojila Tunnel, which will dramatically reduce travel times and boost regional economies.

He mentioned that tourism circuits—such as the Buddhist Circuit and spiritual ropeway projects in Kedarnath and Uttarakhand—are being developed through public-private partnerships (PPP) to promote religious tourism and local entrepreneurship.

“These projects will not only enhance connectivity but also bring economic prosperity to remote regions,” he noted.

Building the India of 2047: Prosperous, Sustainable, and Inclusive

Concluding his address, Shri Gadkari reaffirmed the government’s vision to build safe, sustainable, and economically vibrant infrastructure that supports India’s goal of becoming a developed nation by 2047.

He called upon industry leaders to embrace innovation, invest in green technologies, and drive entrepreneurship to make India’s growth model both inclusive and environmentally responsible.

“The foundation of a developed India lies in a strong ethical base, a vibrant economy, and an unwavering commitment to ecological balance,” he said. “Together, let us build an India that is not only powerful but also compassionate and sustainable.”

The session concluded with Shri Gadkari presenting the PHDCCI Business Practices & Excellence Awards 2025, recognizing outstanding contributions by industry leaders to innovation, sustainability, and national development.