Electric Vehicles Are Not Enough – India Needs a Green Logistics Revolution

India’s transition to electric vehicles has been a significant and necessary step in the fight against climate change. From electric two-wheelers to buses and cargo three-wheelers, we are witnessing growing momentum across the mobility landscape. However, focusing only on electrifying vehicles, while essential, is not sufficient. If India is to truly decarbonize its economy, we need to address the far bigger challenge: transforming the entire logistics ecosystem into a green, sustainable engine of growth.

The logistics sector is the backbone of India’s economy, contributing over 14% to the GDP. Yet, it remains one of the most polluting and inefficient components of the transport chain, accounting for nearly 40% of transport-related CO₂ emissions. Over 70% of freight in India moves via diesel-powered trucks. While electric alternatives are emerging, the lack of focused government support for electric trucks remains a major bottleneck. We need a consistent, long-term EV policy—what exists today is highly volatile, leading to uncertainty among investors and manufacturers. Without a fixed policy roadmap, the momentum will stall before it scales.

A Green Logistics Revolution involves far more than just cleaner vehicles. It calls for electrification of transport fleets, development of renewable energy-based charging infrastructure, smarter warehousing, and data-driven route optimization. Technologies like AI, IoT, and blockchain can transform operational efficiency. At the same time, we must also push for adoption of hydrogen and bio-CNG for long-haul freight, where electric powertrains may not be viable in the near term. A balanced technology mix, backed by solid policy, is essential.

Financing is another pressing concern. Due to a spate of recent loan defaults by inexperienced startups, many financial institutions have grown risk-averse to the EV sector—especially in logistics. This must be urgently addressed. Viable financing models, credit risk mitigation frameworks, and government-backed green financing instruments need to be created to enable scalable deployment of electric logistics fleets. Without accessible and affordable capital, even the best technologies cannot achieve widespread adoption.

The future of India’s economic growth lies in sustainable logistics. A cleaner, more efficient logistics network will lower costs, reduce emissions, and create millions of green jobs. It will also make India a more competitive player in global supply chains. Let us not stop at electrifying mobility—let us commit to a complete green logistics revolution. The time for incremental change is over; the time for system-level transformation, backed by consistent policy and financial support, is now.

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