Around 65 per cent of the country’s population is rural but they contribute only 12 per cent in growth, he said at a Business Today event here. In order to become a USD 5 trillion economy and achieve third rank in the work, the country’s rural economy and agriculture are very important, the Union minister for road transport and highways (MoRTH) said.
“The government is working on boosting the irrigation sector. We need to have the most successful technology in the world. The agriculture economy will create more jobs in the rural sector,” he said.
While pointing out that 36 green highways are being built along with projects costing Rs 3 lakh crore for port connectivity, he said the basic problem facing the economy was logistics cost, which stands at 14-16 per cent.
“We need to bring it down to 9 per cent. Good roads, alternate fuels will ensure cost reduction. Exports will increase by 1.5 per cent. Our problem is not resources but expenditure,” he said.
The Union minister said India can match the competitiveness of China. Emphasising there will be no compromise on the quality of roads, Gadkari said he had blacklisted errant contractors.He also said the size of the automobile sector in the country was Rs 14 lakh crore when he became minister (in 2014), which had grown to Rs 22 lakh crore now. In five years, India’s automobile sector will be the second largest in the world, Gadkari said.Asked about some states levying taxes on electric vehicles (EVs) at a time when the Union government is promoting it, he said it is the prerogative of state governments. Encouraging alternative bio fuel is the policy of the Central government, the senior BJP leader added. On being queried about freebies, he said one would have to choose between productive expenditure and unproductive expenditure.
“We have to decide on whether to generate employment or distribute money,” Gadkari said.
Content Source: economictimes.indiatimes.com