E-Paper
Rewriting India’s transport future
Policy push for electrification of trucks is a game-changer. It will benefit manufacturing, reduce emissions, and improve air quality
Transportation emissions account for nearly 25% of global greenhouse gas (GHG) emissions. In India, the sector contributes almost 14% of the country’s carbon dioxide emissions, with about 90% coming from road transport. Given India’s commitment to achieving net-zero emissions by 2070, decarbonising road transportation is both urgent and essential.
India today stands at a remarkable turning point in its mobility journey. For decades, transport meant traffic congestion, high logistics costs, and patchy connectivity. But a quiet revolution is underway. Transport is no longer seen as a background sector — it is becoming a central pillar in India’s ambition to become a developed economy, a Viksit Bharat, by 2047, while meeting its net-zero target by 2070.
Globally, countries that transformed their transport systems unlocked not just economic efficiency but also growth, sustainability, and competitiveness. India has the same opportunity — if it makes the right choices now.
Three recent policy moves have the potential to transform India’s transport landscape, offering a blueprint for a cleaner, more efficient, and future-ready system.
Electrifying trucks: Transport accounts for 14% of India’s GHG emissions, with medium and heavy-duty trucks responsible for 44% of that share — despite comprising just 3% of vehicles on the road. India’s logistics costs, at about 13% of GDP, far exceed the global average. With 70% of freight moving by road and fuel making up a large portion of costs, electrifying trucks is both an environmental and economic imperative.
Last month, the ministry of heavy industries released guidelines for electric trucks under the PM e-DRIVE scheme, a vital first step in transitioning India’s trucking sector toward a cleaner and more aatmanirbhar (self-reliant) future. Until now, the spotlight has been on electric buses, two-wheelers, and three-wheelers. By supporting electric trucks, e-DRIVE addresses three challenges at once: One, reducing logistics costs through lower fuel dependency; two, strengthening domestic manufacturing of advanced electric vehicle (EV) technologies such as heavy-duty batteries and charging systems; and three, improving air quality along highways and in cities, with health benefits for millions.
China has already demonstrated how electrifying freight can transform supply chains. India now has the chance to leapfrog the diesel-dependent model and build a greener logistics backbone.
Improving fuel efficiency: The Bureau of Energy Efficiency (BEE) has proposed Phase 3 and 4 of the Corporate Average Fuel Efficiency (CAFE) norms for passenger cars, currently under finalisation. Additionally, BEE has released draft fuel-efficiency regulations for light, medium, and heavy-duty vehicles — regulations with immense potential to reshape the road transport sector.
Fuel economy standards form the regulatory backbone of efficiency. They require automakers to achieve fleet-wide average fuel consumption targets, while providing flexibility in how to meet them, whether through advanced engine technologies or accelerated EV adoption.
Without strong fuel economy standards, India risks drifting toward fuel-guzzling vehicles, weakening fleet efficiency, raising emissions, and deepening dependence on imported oil. This creates a vicious cycle of higher costs and energy insecurity.
Finalising CAFE for cars and fuel-efficiency standards for commercial vehicles will provide manufacturers long-term clarity and direction, paving the way for cleaner vehicles across the Indian market.
Expanding beyond road transport: India’s Maritime Amrit Kaal Vision 2047 sets an ambitious agenda for transforming the shipping and port sector into a globally competitive, sustainable system. It envisions expanding port capacity from 2,600 million metric tonnes per annum (MMTPA) today to more than 10,000 MMTPA, supported by world-class infrastructure, digital innovation, hydrogen and ammonia hubs, carbon-neutral operations, and shore power at all major ports by 2047. The vision also positions India among the top five global shipbuilding nations.
Complementing this initiative, the Harit Sagar Green Port Guidelines provide a framework to shrink the environmental footprint of ports — targeting over 60% renewable energy use by 2030 and 90% by 2047, electrifying half of port equipment by 2030 and 90% by 2047, and reducing CO₂ intensity per ton of cargo handled by more than 70% by 2047.
Together, these measures show India’s commitment to making maritime transport efficient, sustainable, and globally competitive.
India’s transport story is being rewritten. Today’s policy announcements will shape not only how we move tomorrow, but also how competitive India’s economy will be in a decarbonising world.
If implemented with urgency and foresight, the PM e-DRIVE scheme, fuel-efficiency regulations, and Maritime Vision 2047 can deliver far more than emissions reductions. They can lower logistics costs, create green jobs, strengthen energy security, and boost India’s global standing.
This transformation of transportation is not just about reducing emissions or improving public health — it is about seizing a generational economic opportunity. A recent Niti Aayog report estimated that electric vehicles alone represent a $200-billion opportunity for India as the country moves toward achieving a 30% EV sales share by 2030. Add to this the multiplier effects of cleaner logistics, efficient ports, and world-class vehicle standards, and it is clear that transport modernisation can unlock vast new avenues for investment, innovation, and industrial leadership.
India can transform transportation from a long-standing challenge into one of its greatest strengths. The nation stands at the cusp of transformation — and the road to a Viksit Bharat, a developed India by 2047, is being built right now.
Amit Bhatt is India managing director, ICCT, and Drew Kodjak is president & CEO, ICCT. The views expressed are personal
