Steering the Decarbonisation of India’s Logistics Sector: Towards a Greener Supply Chain by 2047

Electric freight truck on Indian highway with solar-powered warehouse and railway freight in background symbolizing decarbonised logistics infrastructure

Source: The Hindu

Relevance: GS III – Environmental Pollution

Introduction

Viksit Bharat is more than a dream. It is a pledge to make India more powerful and independent by 2047. Its foundation is inclusive development, which makes sure that prosperity reaches every individual, company, and area. 

Viksit Bharat @2047

By 2047, when India celebrates the centennial of its independence, the Viksit Bharat @2047 program aims to see the country fully developed. Effective governance, sustainable advancement, and inclusive development are prioritized in this revolutionary agenda. The young people of India, who are thought to be the main forces behind this transformation, are at the center of it. Their role was emphasized by Prime Minister Narendra Modi, who said, “Youth power is both the agent of change and the beneficiaries of change.” Through forums like the Voice of Youth, the program attempts to leverage the creativity, energy, and ideas of the younger generation, linking their aspirations with the nation’s development goals and promoting a future of innovation, progress, and self-reliance.To make the goal of Viksit Bharat 2047 a reality, a significant announcement has been made.

The Carbon Cost of India’s Logistics Sector

This industry is most affected by high carbon emissions, which are mostly caused by burning oil. 

  • Approximately 13.5% of the nation’s total greenhouse gas emissions come from it, with over 88% coming from road transportation alone (International Energy Agency, 2020). 
  • Roads are essential for around 90% of passenger transit and 70% of freight movement, and trucks account for 38% of CO2 emissions (IEA, 2023).

International Energy Agency

Founded in 1974, the International Energy Agency (IEA) is an independent intergovernmental agency with its headquarters in Paris that offers statistics, analysis, and policy recommendations related to the worldwide energy industry. 75% of the world’s energy demand is met by the IEA’s 31 member nations and 13 associate nations.

By 2030, government initiatives predict a rapid rise, with coastal marine cargo flow increasing by 1.2 times and interior waterway cargo and passenger transit tripling. This expansion sustains its scalability and sustainability objectives while also boosting economic momentum.

Visual representation of India’s decarbonisation strategies in logistics including rail electrification, electric trucks, LNG vessels, and solar-powered warehouses
India’s multi-modal approach to decarbonising logistics — from rail electrification to green shipping initiatives and energy-efficient warehousing.

Why Decarbonisation is Critical for Growth

Examples from throughout the world offer a solid basis for this transformation, with nations like the US and China effectively switching from road to rail freight transportation. 

  • When rail freight is used instead of vehicle freight, emissions are greatly reduced. Due to significant investments, China’s rail network has grown to about 50% of the country’s total land area
  • This change has been welcomed in the US as well, making rail one of the first decarbonized freight solutions. 
  • India should increase the proportion of freight transportation on railways in order to lower emissions and boost efficiency. 

Rail is a more environmentally friendly, nearly carbon-free mode of transportation and was one of the first to electrify.

Pathways to Decarbonise Logistics

Decarbonization Reducing emissions is not the only goal of India’s logistics industry. The goal is to create an industry that is more robust, competitive, and prepared for the future. Decarbonization is the key to guaranteeing sustainable growth in India’s logistics industry, which is about to undergo a transition.

Rail Freight: Scaling the Green Backbone

  • By switching entirely to electric traction, 2.83 billion liters of fossil fuel will be used less annually, which will also result in a decrease in greenhouse gas (GHG) emissions.
  • Electric traction is a more environmentally friendly option because its GHG emissions are lower than those of diesel traction.

Electrifying Road Transport

  • With a recent initiative by the Union Minister for Road Transport and Highways, India has already taken a daring step in this direction: installing overhead electric cables along highways to power electric trucks. 
  • While maintaining high efficiency and economic feasibility, the first pilot project on the Delhi-Jaipur corridor may be a game-changer in lowering emissions from freight movement.

Greening Coastal Shipping & Inland Waterways

Decarbonization of inland waterways and coastal transport has enormous potential. 

  • The International Maritime Organization (IMO) is pushing industry to use cleaner fuels such ammonia, hydrogen, LNG, biofuels, methanol, and electricity in order to reduce global shipping emissions by 50% by 2050 (relative to 2008 levels). 
  • By adding LNG-powered ships, solar-powered electric boats, and even barges that run on electricity or biofuel, India may accelerate its green transition. These emission-reduction measures can maintain the sustainability and efficiency of freight movement.

Policy Push and Institutional Support

PM Gati Shakti initiative

The infrastructure plans of several Ministries and State Governments, including Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, etc., would be incorporated by PM Gati Shakti. 

  • To increase connection and boost the competitiveness of Indian businesses, economic zones such as textile clusters, pharmaceutical clusters, defense corridors, electronic parks, industrial corridors, fisheries clusters, and agro zones would be covered. 
  • Additionally, it will make substantial use of technology, such as spatial planning tools that use imagery created by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics) and ISRO (Indian Space Research Organization).

National Logistics Policy 2022

Through an integrated, seamless, dependable, efficient, green, sustainable, and cost-effective logistics network that leverages best-in-class technology, processes, and skilled labor, NLP aims to propel the nation’s economic growth and business competitiveness. Performance will be enhanced and logistics costs will be decreased.

Fame II

Phase-II of the FAME Scheme, which would cost Rs. 10,000 crore and run for three years starting on April 1, 2019, has been authorized by the government. across order to generate demand for xEVs across the nation, approximately 86% of the overall budgetary support has been set aside for demand incentives

  • This phase intends to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 E Four Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.

Green Energy Corridor

A dedicated transmission infrastructure for large-scale solar and wind power plants was planned after a study by Power Grid Corporation of India Limited (PGCIL) in 2012 revealed that there was a lack of power evacuation and transmission infrastructure in the immediate vicinity of possible sites.  

  • In addition to the establishment of a Renewable Energy Management Center (REMC) and control infrastructure such as storage systems and reactive compensation, GEC consists of the Intra State Transmission System (InSTS) and the Inter State Transmission System (ISTS).

India can create a high-performing logistics network with less of an impact on the environment by increasing rail freight, electrifying road transportation, using cleaner marine fuels, and improving warehouse energy efficiency. Now is the moment to take action, and India can set the standard for developing a logistics ecosystem that is greener, cleaner, and more effective with the correct investments and legislation.

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