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New report says India can reduce logistics cost by 4 per cent of GDP

Containers/logistics. Stock photo: Hessel Visser/ Pixabay

New Delhi, June 9 (MNN) A new report involving the NITI Aayog has said that India holds the potential of reducing its logistics cost by four per cent of the gross domestic product and also achieve 10 giga tonnes of cumulative CO2 emissions savings between 2020 and 2050.

The report ‘Fast Tracking Freight in India: A Roadmap for Clean and Cost-Effective Goods Transport’ helmed by NITI Aayog, RMI and RMI India talks about key opportunities for India to reduce its logistics costs.
The report also says that the country can reduce its nitrogen oxide (NOx) and particulate matter (PM) emissions by 35 per cent and 28 per cent respectively by 2050.

“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 cleaner. 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,” said Sudhendu J Sinha, Adviser (Transport and Electric Mobility), NITI Aayog.

As India’s freight activity grows five-fold by 2050 and about 400 million citizens move to the 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, the government said.

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