Smart and Climate Friendly Logistics in India

April-June | 2026
Bilateral

Mitigation of Climate Change

Link To Project:   Click Here

The Smart and Climate-Friendly Logistics in India is transforming India’s policy into action with city logistics planning and implementation, digital tools, strategic planning of multi modal logistics parks, improving transport logistics performance and workforce skilling to drive sustainable growth and contributing to the country’s Net Zero target.

Project Updates

Planning Smarter, Moving Cleaner: India's Logistics Transformation

The Department for Promotion of Industry and Internal Trade’s (DPIIT) assessment for 2025, in collaboration with the National Council of Applied Economic Research, estimates India’s logistics cost at 7.97% of GDP for FY 2023-24, representing a substantial revision from the previously cited figure of 13-14%. Despite this progress, freight movement remains predominantly dependent on road transport, which is more carbon-intensive and costly compared to rail and shipping modes.

The Smart and Climate-Friendly Logistics in India (Smart Logistics) project, implemented in partnership with DPIIT by GIZ, aims to support India’s transition towards sustainable logistics through the application of green strategies and digital/technological solutions for freight transport decarbonisation, aligning with the country’s NetZero commitment by 2070.

Following the formalization of the project, an Implementation Agreement was signed on 21 April 2026 between DPIIT and GIZ. The project’s scope encompasses four key areas: development of City Logistics Plans (CLPs) and advising on plan implementation, enhancement of logistics performance across major transport sectors (roadways, railways, shipping, airways, customs, and postal services), siting of Multi-Modal Logistics Parks (MMLPs), and workforce skilling.

To advance city logistics planning nationwide, based on the project advise, DPIIT of the Ministry of Commerce and Industry (MoCI) issued guidance to State Governments for the adoption of standardized documents, including the CLP Assessment Matrix, Model RFP templates, Data Requirements Guide, and City Logistics Coordination Committee (CLCC) notifications. For two cities that have developed CLPs, the project has identified key infrastructure and other logistics measures for implementation, prompting DPIIT to instruct not only the two cities but also all the 50 cities in the country to report on progress along with phased action plans.

The project has compiled an extensive list of international logistics KPIs across targeted sectors and shared these with DPIIT to facilitate discussions with the sectoral ministries of the Indian government. Additionally, for the targeted 50 Multi-Modal Logistics Parks, the project has developed a tailored strategic approach based on international best practices, ensuring geographic coverage, regional equity, and sustainability.