India’s logistics landscape is undergoing a sustainable shift as the global call for climate-conscious supply chains strengthens.
With freight and warehousing emissions under scrutiny and carbon-neutral pledges gaining ground, the green logistics industry has entered a transformative phase, influencing both policy and business practices across geographies.
Globally, green logistics is rapidly becoming a cornerstone of sustainable growth strategies, encompassing energy-efficient warehousing, low-emission transportation, and optimised distribution networks. The shift reflects a broader movement among governments and corporations to balance economic expansion with environmental responsibility. In India, where logistics contributes over 14 per cent of GDP and is poised to hit US$ 107 billion in market value, the sector’s green transition is seen as both a challenge and a high-impact opportunity.
The growing popularity of green logistics is being propelled by multiple high-emission industries—from manufacturing and retail to healthcare and e-commerce—that are now embracing low-carbon operations. Of these, the manufacturing sector is leading the way, driven by energy audits, green warehousing practices, and increased reliance on electric and alternate fuel-based transport. However, it is the distribution segment, long regarded as the backbone of logistics, that continues to dominate, given its potential for emission reductions through route optimisation and modal shifts.Asia Pacific, including India, remains the most active region in this transformation. Strong regulatory frameworks and strategic investment in sustainable infrastructure have catalysed this growth.
Countries across the region are aggressively pursuing green corridors, electrified transport networks, and logistics hubs powered by renewable energy.Meanwhile, North America is showing remarkable momentum, with investments in green fuel technologies and supply chain digitisation signalling strong market potential. The continent’s green logistics segment is forecast to expand steadily, especially as automotive manufacturing and e-commerce continue to grow. In Europe and the Gulf, similar trends are playing out, driven by emissions targets and rising public scrutiny around environmental compliance.India, in particular, stands at the cusp of a critical transition. While the sector has been historically constrained by fragmented networks and high logistics costs, recent government programmes and private sector innovation have begun laying the groundwork for a greener, more efficient supply chain.
New-age logistics start-ups are deploying electric fleets, AI-based inventory systems, and sustainable packaging solutions to align with climate goals.
Yet, hurdles remain. Green hydrogen, sustainable aviation fuels, and other low-carbon alternatives still face cost and scalability issues. Without consistent policy support and large-scale public-private collaboration, the pace of decarbonisation may fall short of global targets.As the country prepares for its next phase of urban and industrial expansion, sustainable logistics must evolve from a niche concern into a mainstream mandate. India’s commitment to net-zero by 2070 hinges in part on how effectively it can decouple economic growth from environmental degradation.With rising consumer expectations, tighter regulations, and evolving corporate accountability frameworks, the green logistics industry could soon become not just a business imperative, but a social one—shaping not only the way goods move, but how cities breathe, grow, and thrive.
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