India can save logistics fuel worth Rs 311 Lakh Crore in next 3 decades: Report

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A report has claimed that India can save logistics fuel worth Rs 311 lakh crore between 2020 and 2050.

‘Fast Tracking Freight in India: A Roadmap for Clean and Cost-Effective Goods Transport’, a report prepared by NITI Aayog, RMI and RMI India, presents key opportunities for the country to reduce its logistics costs.

Due to the rising demand for goods and services, freight transport demand is expected to grow rapidly in the future. While freight transport is essential to economic development, it is plagued by high logistics costs and contributes to rising CO2 emissions and air pollution in the cities.

According to the report, India has the potential to reduce its logistics cost by 4 per cent of GDP and save 10 Gigatonnes of cumulative C02 emissions over the next three decades.

India can reduce nitrogen oxide and particulate matter emissions by 35 per cent and 28 per cent, respectively, until 2050, it said.

“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 clean. 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, said.

As India’s freight activity grows five-fold by 2050 and about 400 million citizens move to cities, a whole system transformation can help uplift 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,” said Clay Stranger, Managing Director, RMI.

The report outlines solutions for the freight sector related to policy, technology, market, business models and infrastructure development.

The recommendations include 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.

When successfully deployed at scale, the proposed solutions can help India establish itself as a leader in logistics innovation and efficiency in the Asia Pacific region and beyond.

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