Transportation is one of the biggest contributors to climate change, accounting for nearly a quarter of global greenhouse gas (GHG) emissions. In India, the sector contributes around 14% of the country’s CO emissions—of which nearly 90% comes from road transport. As India works toward its goal of net-zero emissions by 2070, decarbonising transport is no longer optional—it is essential.

For decades, transport in India was synonymous with congestion, high logistics costs, and uneven connectivity. But that picture is changing. Today, transport is emerging as a central pillar of India’s vision of becoming a Viksit Bharat (developed nation) by 2047, while also meeting its climate commitments. The choices made now will determine not only how Indians move, but also how competitive the economy will be in a decarbonising world.

Three Policy Interventions Stand Out as Potential Gamechangers

1. Electrifying Trucks
Although trucks make up just 3% of India’s vehicle fleet, they are responsible for 44% of road transport emissions. They also drive high logistics costs—currently about 13% of GDP, well above the global average.

The Ministry of Heavy Industries recently issued guidelines to support electric trucks under the PM e-DRIVE scheme—a major shift, as policy focus so far has largely been on buses, two-wheelers, and three-wheelers.

Electrifying trucks can:

• Cut logistics costs by reducing fuel dependence.
• Strengthen domestic manufacturing of advanced EV technologies, including heavy-duty batteries and charging systems.
• Improve air quality along highways and in cities. China has already shown how clean freight systems can strengthen supply chains. India now has the opportunity to leapfrog the diesel-based model and build a greener logistics backbone.

2. Strengthening Fuel Efficiency Standards

Fuel economy is the silent workhorse of clean transport. The Bureau of Energy Efficiency (BEE) has proposed Phase 3 and 4 of the Corporate Average Fuel Efficiency (CAFE) norms for passenger cars, along with draft fuel-efficiency regulations for commercial vehicles.

Without robust standards, India risks drifting toward fuelinefficient vehicles—locking in higher oil imports, rising emissions, and greater energy insecurity. Finalizing and enforcing these standards would give automakers clarity, spur innovation, and accelerate the shift toward cleaner vehicles.

3. Measuring Real-World Emissions

One critical gap in India’s transport sector has been the lack of reliable data on real-world vehicle emissions. Laboratory tests often fail to capture on-road performance, leading to discrepancies in reporting and policy design.

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To bridge this gap, the Ministry of Road Transport and Highways (MoRTH), with support from the International Council on Clean Transportation (ICCT), is conducting India’s first large-scale program to measure real-world emissions across vehicle categories. This initiative will:

• Provide policymakers with accurate on-road emissions data.
• Enable regulators to design and enforce standards that reflect actual driving conditions.
• Guide automakers to deliver cleaner performance on the road, not just in labs.

THE ROAD AHEAD

India’s transport transformation is not just about cutting emissions. Done right, it can reduce logistics costs, create green jobs, strengthen energy security, and unlock vast markets for investment and innovation.

According to a NITI Aayog study, electric vehicles alone could represent a $200 billion opportunity for India by 2030. When combined with cleaner trucking, stronger fuel efficiency, and real-world emissions data, the upside becomes even greater.

Transport has long been seen as a challenge for India. With the right policies and decisive implementation, it can become one of the country’s greatest strengths. The road to Viksit Bharat 2047 is being laid today—and transport will be its backbone.

Views expressed by Amit Bhatt, Managing Director, International Council of Clean Transportation

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