Indian Logistics Must Clean Up Its Act Before It's Too Late

This crucial sector could let India's growth story down if it doesn't work fast to reduce emissions

- SOUMYA SARKAR

India's logistics sector stands at an inflection point where the climate crisis has changed from an environmental concern to an existential business imperative. This is visible not just in flooded highways, buckled rail tracks and port shutdowns, but in the projection of $35 trillion in economic losses by 2070, equivalent to 12.5% of GDP that year, if climate risks go unaddressed. Timely climate action can transform these losses to $11 trillion in gains, according to Deloitte.

India's economic expansion, underlined by a formidable rate of growth, is fueling a surge in demand for logistical services, with an estimated sectoral value of over $228 billion in 2024. This is growing at double-digit rates and is expected to reach $380-490 billion by 2030. E-commerce logistics alone is forecast to reach $7.85 billion by 2030. Niti Aayog says the sector contributes about 14% to India's GDP, much higher than the 8-9% in developed economies, due to inefficiencies in warehousing and transport. Logistics is expected to grow exponentially, but will come with a substantial carbon footprint. India is already the world's third-largest emitter of planet-warming gases, with the logistics sector contributing about 13.5% of India's greenhouse gas emissions. If current trends persist, road freight emissions alone could quadruple by 2050.