Building a Low-Carbon Future for Indian Logistics

The Indian logistics sector, the backbone of our ‘Aatmanirbhar Bharat’ vision, is at a critical inflection point. As the country accelerates toward its Net-Zero 2070 commitment, the immense task of decarbonizing logistics—which currently accounts for an estimated 13.5% of India’s total Greenhouse Gas (GHG) emissions and where road transport contributes over 88% of these sector-specific emissions—cannot be overstated. At Transport Corporation of India (TCI), we recognize that a low-carbon future is not just an environmental imperative but a commercial necessity for long-term competitiveness and resilience. The transition to ‘Green Logistics’ is already underway, driven by both policy and market forces.

The Decarbonization Roadmap: Essential Strategies

Achieving significant carbon reduction requires a comprehensive, multi-modal, and technology-driven approach, often summarized by the ‘Avoid, Shift, Improve’ framework. A key strategic priority is the Shift to Lower-Carbon Modes, actively moving cargo from road freight—which currently dominates—to more energy-efficient modes like railways and coastal/inland waterways. Rail freight emits roughly one-fifth the carbon of trucks per tonne-kilometre, making initiatives like the National Logistics Policy (NLP) and the PM GatiShakti National Master Plan crucial for enabling this through better multimodal infrastructure and first/last-mile connectivity, with a goal of increasing the rail freight share to an ambitious 45% by 2030.

For road transport, the necessity lies in Fleet Modernization and Alternative Fuels. This involves transitioning the fleet away from diesel, utilizing Electric Vehicles (EVs) for intra-city and short-haul logistics, and deploying Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) as critical transitional fuels that offer immediate emission reductions for Medium and Heavy Commercial Vehicles (MHCVs). Looking ahead, we must invest in and pilot technologies for Green Hydrogen, which holds the most promise for zero-emission, long-haul heavy-duty trucking. Crucially, leveraging Telematics and IoT for real-time data allows for advanced Route and Load Optimization, ensuring maximum cargo fill and minimal empty running, thereby improving operational efficiency.

Decarbonization also extends to the entire logistics ecosystem through Green Warehousing and Supply Chain Design. This means integrating renewable energy sources like rooftop solar for warehouses and distribution centres, implementing energy-efficient lighting and smart building management systems, and pursuing green building certifications. Furthermore, reducing material consumption is vital, necessitating the use of lighter, recyclable, or biodegradable sustainable packaging. Finally, for all these efforts to be effective, there must be Precise Measurement utilizing dedicated, India-specific tools like the Transportation Emissions Measurement Tool (TEMT) to accurately measure and benchmark “Well-to-Wheel” emissions for informed, data-driven decision-making.

Current Situation and Transitional Challenges

While policy support is strong, the transition faces several systemic challenges. A primary hurdle is the High Reliance on Fossil Fuels and High Transition Costs, as over 90% of MHCVs still rely on diesel. This structural challenge is compounded by the high upfront cost of new low-carbon vehicles (EVs and Hydrogen trucks) and the necessary infrastructure, which is a significant deterrent for the heavily fragmented and unorganized sector where small operators lack access to low-cost Green Finance. This leads directly to the next major issue: Infrastructure and Grid Dependency. The scarcity of reliable EV charging infrastructure, especially for heavy-duty long-haul routes, severely limits adoption, and the overall environmental benefit of road electrification is dependent on the concurrent decarbonization of the electricity grid itself. Further complicating matters is the industry’s Fragmentation and Data Gaps. The fragmented structure hinders the coordinated, standardized adoption of new technologies and makes unified emission tracking difficult without a universally adopted measurement framework. Moreover, while shifting to rail is cleaner, Modal Bottlenecks, such as first-mile and last-mile connectivity issues and limited warehousing near railheads, slow down the effective shift from road.

Future Forecast: The Path to Net Zero

The future of Indian logistics will be defined by its ability to integrate technology, policy, and infrastructure development. In the Short to Mid-Term (Up to 2030), under an aggressive policy scenario, India’s road transport emissions could potentially peak around 2030, followed by a decline. This period will see an Accelerated Electrification in the Light Commercial Vehicle (LCV) and Last-Mile Delivery segments, alongside a strong push for CNG/LNG adoption as a crucial bridging fuel for long-haul transport. This will be supported by the widespread adoption of digital platforms like ULIP and TEMT, bringing unprecedented data-driven efficiency and transparency to supply chains. Looking at the Long-Term (2030 and Beyond), as costs fall, the Hydrogen Revolution will likely make fuel cell technology the dominant zero-emission solution for long-haul heavy trucking, achieving cost parity with diesel. This will be matched by Modal Excellence, facilitated by dedicated freight corridors and integrated logistics parks, enabling the government’s goal to increase the rail freight share to 45%. Ultimately, Systemic Efficiency will define the landscape, where decarbonization is an embedded strategy, and a low-carbon supply chain is synonymous with a cost-efficient and resilient supply chain. TCI remains committed to leading this charge, leveraging our expertise, technology, and partnerships to ensure India’s economic growth is decoupled from carbon emissions, delivering a resilient, efficient, and truly green logistics network for the nation.

Building a low-carbon future starts now—what’s the first step you’d take?

(The article is authored by Rajkiran Kanagala, President & Chief Business Officer, TCI Group.)