The Indian logistics sector has experienced strong growth in recent years. However, the $250 billion logistics sectors still face many downtimes.

The government has taken initiatives to make logistics run smoothly while encouraging the use of cleaner fuels. The Gati Shakti National Master Plan (NMP) will catalyze the benefits of the sector, especially green logistics.

India is the third largest emitter of greenhouse gases (GHG), with about 2.35 gigatons of CO2 emissions in 2021. The logistics sector is becoming more environmentally aware and is trying to reduce its carbon footprint by switching to alternative fuels. The key government initiatives including the Sagarmala program, GST reduction and NMP will pave the way for green logistics.

The logistics industry is expected to grow at a compound annual growth rate of 10-12% (CAGR) to $380 billion by 2025. However, logistics and supply chain costs represent 13-14% of India's gross domestic product (GDP). higher than most other countries.

Prime Minister Narendra Modi launched the Gati Shakti NMP in October 2021 to reduce logistics costs and improve infrastructure efficiency.

The NMP is a transformative approach to economic and sustainable growth. The 100 lakh crore project allows for faster implementation of development projects through technology resulting in faster, smoother and more efficient delivery.

The government is creating a one-window logistics platform by integrating 24 departments and six ministries into its Unified Logistics Interface Platform (ULIP). It provides real-time visibility to fill the freight gap, reduce costs and simplify business.

The Gati Shakti aims to build roads connected with railway lines that will lead further to large and small ports, leading to efficient freight traffic, especially from the borders.

By integrating all multimodal connectivity projects, the NMP will optimize the efficiency of freight and passenger traffic.

The Ministry of Road Transport and Highways (MoRTH) and Shipping plans to connect all state capitals in the northeast by expanding the network of National Highways (NH) to 2 lakh km by 2025. It will shorten lead time and improve supply chain efficiency.

The government is constantly trying to promote natural gas as a fuel for long-distance transportation. It is expected to become a more reliable choice due to its lower storage costs and lower emissions.

The CNG distribution stations can grow at a CAGR of 17%, and the government plans to set up 1,000 LNG stations across India over the next three years.

Green logistics can significantly improve operations in the logistics industry, saving cost and time, tracking, reliability, transportation infrastructure and transparency, while attracting investment in logistics infrastructure for green and resilient multimodal connectivity.