For a country's economy to function, logistics is crucial. It has to do with how raw materials are generally collected, stored and transported to their final destination under control. Part of logistics management is evaluating the effectiveness and accessibility of potential distributors and suppliers. Logistics is estimated to account for 14.4% of India's GDP. It is the main source of income for more than 22 million people.

The logistics sector is now a frontrunner and is expected to grow at a 10-12 per cent CAGR to US $ 380 billion by 2025. But even today, logistics and supply chain costs account for 13-14 per cent of India’s GDP, which is higher than most other countries. Therefore, to accelerate the logistics industry is now in the lead. Thus, in October 2021, Prime Minister Narendra Modi introduced the Gati Shakti NMP in an effort to quicken inclusive and multimodal connectivity. It will lower logistics expenses and boost the effectiveness of the infrastructure.

With around 2.35 gigatonnes of carbon emissions in 2021, India ranks third globally in terms of greenhouse gas emissions. In order to reduce its ecological footprint and encourage the use of cleaner fuels, the logistics sector is also becoming more environmentally conscious. The government's key measures, such as the Gati Shakti National Master Plan, the GST reduction and the Sagarmala programme, which come at the right time, would pave the way for green logistics.

The development of alternative fuels presents another chance for the logistics industry. As of today, users and logistics businesses are unwilling to switch to cleaner fuels due to the subpar infrastructure of CNG and LNG pumps. Yet, because NG has lower storage costs and produces fewer pollutants, it will probably become a dependable option as a result of the government's ongoing efforts to promote it as a long-haul transportation fuel. In fact, the government intends to build 1000 LNG stations across India in the upcoming three years, with a CAGR of 17% for the growth of CNG dispensing stations.

The logistics sector has welcomed the government's proposal in the 2023-24 union budget to increase capital investment by 33% to Rs 10 lakh crore, claiming that the emphasis on infrastructure will strengthen India's position in the global supply chain.

The INR 75,000 crore investment plan for 100 critical transport infrastructure projects, including a capital outlay of Rs 2.40 lakh crore for railways, will improve the multimodal logistics ecosystem and help the sector become more streamlined. The push for green growth in budget 2023, which promotes green energy, green mobility, and other sustainable initiatives, will aid in lowering the carbon intensity of the economy and creating large numbers of green-scale job opportunities. Policy interventions such as replacing old polluting vehicles will pave the way for more efficient energy use throughout the sustainable logistics ecosystem.

With this collaboration, GreenLine will enable JK Lakshmi Cement to gradually decarbonize its road logistics operations over the next few years. Starting with a fleet of ten LNG trucks operating on the Sirohi (Rajasthan) - Surat (Gujarat) route, the companies intend to significantly expand this over the next two years. Each LNG truck saves 35 tones of CO2 per year. This switch to LNG-powered trucks will reduce toxic CO emissions by up to 70%, NOx emissions by up to 59%, Sox emissions by up to 100%, and particulate matter emissions by up to 91%. The use of LNG trucks will also help to reduce noise pollution by up to 30%.

There is growing evidence that green logistics improves supply chain performance, especially as greenness promotes an integrated view of supply chains. Green logistics has become an increasingly important part of the discourse and practices of supply chain management in recent decades. It is reasonable to believe that these potential directions for a greener logistics sector will help shape the industry in the future.