NITI Aayog report suggests solutions to save logistics fuel worth INR 311 lakh crore between 2020 and 2050

logistics parks

Indian government’s premier policy think-tank NITI Aayog along with RMI and RMI India has released a new report titled “Fast Tracking Freight in India: A Roadmap for Clean and Cost-Effective Goods Transport”, which highlights key opportunities for India to bring down its logistics costs.

Owing to the increasing demands of goods and services, an increase in freight transport demand is expected. While it is essential for economic development, it is plagued by high logistics costs and contributes to rising CO2 emissions and air pollution in cities.

The Report states that India has the potential to:

  • Reduce its logistics cost by 4% of GDP
  • Achieve 10 gigatonnes of cumulative CO2 emissions savings between 2020 and 2050
  • Reduce nitrogen oxide (NOx) and particulate matter (PM) emissions by 35% and 28%, respectively, until 2050

“Freight transportation is a critical backbone of India’s growing economy, and now more than ever, it’s important to make this transport system more cost-effective, efficient, and cleaner. Efficient freight transport will also play an essential role in realising the benefits of existing government initiatives such as Make in India, Aatmanirbhar Bharat, and Digital India.”

~Sudhendu J. Sinha, Adviser (Transport and Electric Mobility), NITI Aayog

With the country’s freight activity is projected to grows five-fold by 2050 with almost 400 million citizens moving to cities, a transformation in the entire system can help give the much needed uplift to the freight sector.

“This transformation will be defined by tapping into opportunities such as efficient rail-based transport, the optimisation of logistics and supply chains, and shift to electric and other clean-fuel vehicles. These solutions can help India save Rs 311 lakh crore cumulatively over the next three decades.”

~Clay Stranger, Managing Director, RMI

In the report, we come across solutions for the freight sector which are in lines with policy, technology, market, business models and infrastructure development.

It recommends increasing the rail network’s capacity, promoting intermodal transport, improving warehousing and trucking practices, policy measures and pilot projects for clean technology adoption, and stricter fuel economy standards.

If these solutions are successfully deployed at scale, they can help India establish itself as a leader in logistics innovation and efficiency in the Asia–Pacific region and beyond.

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