IEC 2025: India Eyes Global Leadership as Logistics Costs Drop to 9%

The 11th edition of the India Economic Conclave (IEC 2025) kicked off on Tuesday at the Taj Palace, New Delhi, bringing together a powerhouse of global thinkers, policymakers, and industry titans. Under the theme “Navigating Geoeconomics,” the event highlighted India’s trajectory as the world’s fastest-growing major economy and its strategic roadmap toward becoming a developed nation by 2047.

Setting the stage, Vineet Jain, Managing Director of The Times Group, emphasized that India is no longer just “approaching” its moment. “India’s moment is here,” Jain stated, noting that technological supremacy and shifting economic power blocs are redefining the global order.

Union Finance Minister Nirmala Sitharaman addressed the conclave, noting India’s resilience amidst global turbulence. She highlighted the government’s unwavering focus on Micro, Small, and Medium Enterprises (MSMEs) as the engines for job creation and exports.

Sitharaman also delivered a candid assessment of the global trade environment:

• Trade Dynamics: She observed that global trade is currently “neither fair nor free,” with tariffs being weaponized by various nations.
• Strategic Autonomy: While India has safeguarded its industries, it has never intended to weaponize tariffs.
• Historical Ambition: Sitharaman reminded the audience that India once accounted for nearly 25% of global trade, a benchmark the country aims to reclaim in the modern era.

In one of the most impactful sessions of Day 1, Union Minister for Road Transport and Highways Nitin Gadkari revealed a significant breakthrough in India’s supply chain efficiency. He announced that innovative financing and road monetization have eliminated resource constraints for highway development.

A major highlight was the sharp decline in logistics costs, which significantly improves India’s export competitiveness:

“Today, I’m confident that this logistics cost is a single digit at 9%,” Gadkari stated, citing studies from IIM Bangalore and various IITs. This reduction is expected to drive growth across tourism, agriculture, and manufacturing.

Gita Gopinath, Harvard Professor and former Deputy Managing Director of the IMF, offered a global perspective on India’s “trade-offs.” With oil prices hovering around $60 per barrel, she suggested that India has a unique window to:

1. Diversify Energy Partnerships: Move beyond a heavy reliance on Russia.
2. Recalibrate US Relations: Leverage the current economic landscape to strengthen ties with the United States.
3. Manage US-China Tensions: Gopinath noted that total escalation is unlikely due to America’s dependence on China for rare earth elements.

However, she identified land acquisition as a persistent bottleneck that India must address to sustain its infrastructure-led growth.

A Multi-Sectoral Roadmap

The first day also saw participation from leaders like V Vaidyanathan (IDFC FIRST Bank), Sridhar Vembu (Zoho), and Patrik Antoni (IKEA India). Discussions ranged from the “currency of influence” in technology to the stability of the gold market and rural consumption patterns.

The conclave serves as a foundational platform for Day 2, which is set to dive deeper into AI regulation, cybersecurity, and climate transition.

Key Highlights:

• Economic Leadership: IEC 2025 opened in New Delhi with leaders confirming India’s status as the world’s fastest-growing economy, aiming for a fully developed status by 2047.
• Logistics Breakthrough: Union Minister Nitin Gadkari announced that India’s logistics costs have dropped from 16% to 9%, a single-digit milestone that could boost exports by 1.5%.
• Trade & Tariffs: Finance Minister Nirmala Sitharaman highlighted that India must navigate a world of “weaponized tariffs” while aiming to return to its historical 25% share of global trade.
• Strategic Diversification: Experts like Gita Gopinath suggested that $60/barrel oil provides India a strategic opportunity to diversify energy sources and strengthen US ties.