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Fast Tracking Freight in India: NITI Aayog

  • IASbaba
  • June 11, 2021
  • 0
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Fast Tracking Freight in India: NITI Aayog

Part of: GS Prelims and GS -III – Infrastructure

In news

  • NITI Aayog, Rocky Mountain Institute (RMI) and RMI India’s new report, “Fast Tracking Freight in India: A Roadmap for Clean and Cost-Effective Goods Transport”, present key opportunities for India to reduce its logistics costs.
  • The report outlines solutions for freight sector related to policy, Technology, Business models and infrastructure development 
    • Freight transportation is the process of transporting commodities, goods and cargo balance by land, sea or air 
    • Logistics sector represents 5% of India’s GDP and employs 2.2 crore people. 
  • Due to the rising demand for goods and services, freight transport demand is expected to grow rapidly in the future.

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

Issues

  • High logistics costs 
  • Contributes to rising CO2 emissions and air pollution in cities.

Recommendations 

  • Increasing the rail network’s capacity
  • Promoting intermodal transport
  • Improving warehousing and trucking practices
  • Policy measures 
  • Pilot projects for clean technology adoption
  • Stricter fuel economy standards.

Recent Initiatives for freight transportation:

  • FAME Scheme: adoption of electric vehicles (EV), with a goal of reaching 30% EV penetration by 2030.
  • Bharat Stage VI norms
  • Corporate Average Fuel Efficiency (CAFE) Regulations: aim to increase fuel efficiency of vehicles on the road by 35% by 2030.

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