Gati Shakti NMP to enhance benefits in green logistics sector

The Indian logistics sector has witnessed robust growth for the past few years. However, the $250 billion logistics sectors still suffer from many stoppages.

The government has taken initiatives to ensure smooth logistics while promoting the usage of cleaner fuels. The Gati Shakti National Master Plan (NMP) will catalyse the benefits of the sector, especially green logistics.

India is the third-largest emitter of greenhouse gases (GHG), with about 2.35 gigatonnes of carbon emissions in 2021. The logistics sector is growing environmentally conscious and trying to reduce its carbon footprint by swapping to alternate fuels. The government’s key initiatives, including the Sagarmala Programme, GST reduction, and NMP, will pave the way to green logistics.

The logistics sector is expected to grow at a 10-12% compound annual growth rate (CAGR) to $380 billion by 2025. However, logistics and supply chain costs account for 13-14% of India’s gross domestic product (GDP), higher than most other countries.

PM Narendra Modi launched the Gati Shakti NMP in October 2021 to reduce logistics costs and improve infrastructure efficiency.

The NMP is a transformative economic and sustainable growth approach. The 100 lakh crore project will ensure faster implementation of development projects through technology, resulting in a quicker, smoother, and more efficient delivery.

The government is creating a single-window logistic platform by integrating 24 departments and six ministries into its Unified Logistics Interface Platform (ULIP). It will provide real-time visibility to fill the gap in the movement of goods, reduce costs and enhance the ease of doing business.

The Gati Shakti aims to create roads linked to railway lines that will further feed into major and minor ports, leading to the efficient movement of goods, especially from the frontiers.

While integrating all the multimodal connectivity projects, the NMP will optimise the efficiency of the movement of goods and people.

The Ministry of Road Transport and Highways (MoRTH) and Shipping plan to connect all state capitals in the northeast by expanding the national highway (NH) network to 2 lakh km by 2025. It will reduce the turnaround time and enhance efficiency in the supply chain.

The government is constantly trying to promote natural gas as a long-haul transportation fuel. It is expected to become a more reliable choice due to its lower storage costs and lesser emissions.

The CNG dispensing stations might grow at a 17% CAGR, and the government plans to set up 1,000 LNG stations across India in the next three years.

Green logistics can enhance operations across the logistics sector significantly, saving cost and time, tracking, reliability, transport infrastructure, and transparency while attracting logistics infrastructure investments for green and resilient multimodal connectivity.

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