Fast Tracking Freight in India

Fast Tracking Freight in India

Subject : Economy

Context : NITI Aayog, RMI and RMI India’s new report, Fast Tracking Freight in India: A Roadmap for Clean and Cost-Effective Goods Transport, presents key opportunities for India to reduce its logistics costs.

Concept :

• 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.
• 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 cities.

Highlights of the Roadmap

• According to the report, India has the potential to:
• Reduce its logistics cost by 4% of GDP
• Achieve 10 gigatonnes of cumulative CO2 emissions savings between 2020 and 2050
• Reduce nitrogen oxide (NOx) and particulate matter (PM) emissions by 35% and 28%, respectively, until 2050
• The report outlines solutions for the freight sector related to policy, technology, market, business models, and infrastructure development.