The India green logistics market is experiencing steady growth, driven by government mandates, startup innovation, rising ESG consciousness, rapid scaling of EV and surge in green warehousing.
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India green logistics market is projected to witness a CAGR of 7.72% during the forecast period FY2026-FY2033, growing from USD 48.85 billion in FY2025 to USD 88.55 billion in FY2033 due to government mandates, startup innovation, and rising ESG consciousness among enterprises. The green logistics conversation in India is no longer theoretical. Electric trucks, solar-powered warehouses, carbon audits, have moved from boardrooms to depots. With the logistics sector accounting for a substantial chunk of India’s CO₂ emissions, the push for decarbonization is real and urgent.
Report Attributes |
Details |
Base Year |
FY2025 |
Forecast Period |
FY2026-FY2033F |
Historical Period |
FY2019-FY2024 |
Projected Growth Rate |
CAGR of 7.72% between FY2026 and FY2033 |
Revenue Forecast in FY2033 |
USD 88.55 billion |
Fleet electrification is accelerating, green warehousing is becoming a brand asset, and 3PLs are racing to be more than just fast; they need to be clean, compliant, and future-ready. Therefore, companies in the market are planning to invest significantly to secure a dominating position.
For instance, in April 2025, GreenLine Mobility Solutions Ltd., backed by Essar, just made a significant move. The company has secured USD 275 million in equity funding to fast-track the decarbonisation of India’s heavy trucking sector. Notably, USD 20 million comes from investor Nikhil Kamath, giving a strong push to India’s green logistics ambitions. With this funding, GreenLine plans to roll out over 10,000 LNG and electric trucks. The initiative also includes building a nationwide network of 100 LNG refuelling stations, EV charging points, and battery swapping hubs.
The India green logistics market growth is supported by a rapid adoption of electric vehicles in last-mile logistics. Also, with the significant rise in e-commerce requirements and stringent emission norms, companies are transitioning to EVs to lessen the costs and carbon footprints. Government incentives, including state-level EV policies, FAME-II subsidies, and lower GST rates, are fostering this shift. Furthermore, the key companies in the market are efficiently electrifying their fleets, while startups offer EV-as-a-service solutions. EVs cut down the expenses of fuel by 40-60%, making them cost-effective. Sustainable warehousing, AI-driven route optimization, and solar-powered hubs further improve effectiveness. As corporates and consumers are increasingly prioritizing sustainability, EV-driven last-mile delivery is no longer optional; it is a competitive requirement, positioning India as a leader in green logistics innovation.
For instance, in June 2024, Delhivery Limited rolled out 20 Volvo tractor-trailers powered by LNG—Liquefied Natural Gas. It is a first for India’s logistics sector. These trucks run cleaner than diesel, cutting down on nitrogen oxides and particulate matter. Delhivery Limited is betting on lower operating costs and real environmental impact.
Warehouses are not just storage spaces anymore. They are turning into hubs of green energy, automation, and circular resource use. Developers and 3PLs are doubling down on solar rooftops, harvesting rainwater, and thermally efficient infrastructure, especially in NCR, Pune, and Bengaluru. Eco-compliant facilities are becoming the new industry benchmark, not just for optics, but for serious enterprise partnerships. As businesses prioritize ESG (Environmental, Social, and Governance) compliance and cost efficiency, the adoption of eco-friendly warehouses, solar power, and smart energy management is accelerating. This shift is reshaping the India green logistics market, making it more sustainable and technologically advanced.
In January 2024, Mahindra Logistics commissioned a 500,000 sq. ft. Grade-A green warehouse in Bhiwandi, Maharashtra, with 100% solar energy usage, natural lighting systems, and IGBC platinum pre-certification. The facility supports retail and auto clients focused on net-zero supply chains.
Manufacturing Sector Dominates India Green Logistics Demand
The manufacturing sector dominated the largest India green logistics market share, owing to sustainability mandates and rising requirements for cost-efficiency. Industries such as pharmaceuticals, automotive, and FMCG are adopting eco-friendly logistics solutions, including biofuels, electric vehicles, and optimized route planning, to reduce operational costs and emissions increasingly. Also, the government policies, including the Production-Linked Incentive (PLI) scheme and corporate ESG commitments, further propel this move. Companies are efficiently investing in solar-powered warehouses, carbon-neutral supply chains, and hydrogen-powered trucks to meet global sustainability standards. With manufacturing contributing to India’s GDP, its push toward green logistics sets a benchmark for other sectors. As regulations tighten and consumer demand for sustainable products grows, green logistics transitions from a compliance measure to a strategic advantage in India’s industrial growth.
In March 2024, GreenLine Mobility Solutions announced its partnership with JSW Steel to deploy LNG-powered trucks for intra-state freight across Maharashtra and Karnataka. The project aims to reduce transportation emissions by 30%, with live emission tracking shared between both partners.
Report Scope
“India Green Logistics Market Assessment, Opportunities and Forecast, FY2019-FY2033”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India green logistics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2026 and 2033. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Report Attribute |
Details |
Segments Covered |
Mode of Operation, Business Type, End-use |
Regions Covered |
North, East, West and Central, South |
Key Companies Profiled |
Mahindra Logistics Limited, Delhivery Limited, Blue Dart Express Limited, Gati Limited, Shadowfax Technologies Pvt. Ltd., Busybees Logistics Solutions Private Limited (operates as XpressBees), Ecom Express Limited, DTDC Express Limited, Safexpress Private Limited, GreenLine Mobility Solutions Limited |
Customization Scope |
15% free report customization with purchase |
Pricing and Purchase Options |
Avail the customized purchase options to fulfill your precise research needs |
Delivery Format |
PDF and Excel through email (subject to the license purchased) |
In the report, the India green logistics market has been segmented into the following categories:
Key Players Landscape and Outlook
India green logistics market is gaining definition and direction. Players are investing in electric fleets, solar-integrated warehousing, and ESG-compliant service offerings. Safexpress, Gati, and DTDC are revamping key routes and hubs to reduce energy consumption, while startups such as GreenLine Mobility are creating new value in LNG-powered transport and emissions tracking. E-commerce-focused firms, including Shadowfax and XpressBees are adopting electric two-wheelers for intra-city deliveries, especially in Tier 1 and Tier 2 cities. Meanwhile, Ecom Express and Busybees Logistics are beginning pilot programs to test solar-charging docks and recyclable packaging solutions. For instance, in January 2025, Blue Dart Express Limited unveiled India’s largest Low-Emission Integrated Operating Facility in Bijwasan, Delhi. Powered by solar energy, this cutting-edge hub links air and ground services across North India and beyond, raising the bar for both efficiency and sustainability. The facility sits right on the Dwarka Expressway, 20 minutes away from Indira Gandhi International Airport. For Blue Dart, it’s more than just a new building, it is a bold step forward in operational excellence and environmental leadership.
Key Players Operating in the India Green Logistics Market are:
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