The Green J-Curve: Operational Sustainability, Digitalisation and Financial Valuation in India's Logistics Sector

Abstract

The logistics sector in India is in the middle of a dramatic change as India progresses to its vision of a US 26 trillion economy by 2048. The sector, known for its high costs, is fragmented in terms of supply chains, with a significant environmental footprint, and growing pressure to meet global ESG commitments and India&s;s Net Zero 2070. The given paper provides the Green J-Curve as a strategic model to explain how the initial investments in digitalization and sustainability can undermine the financial performance in the short-term perspective and make the long-term benefits of efficiency, resilience, and firm value. With references to the most important policy projects like the National Logistics Policy (NLP) 2022, PM Gati Shakti, and ULIP, the paper draws attention to the contribution of such areas as green mobility, sustainable warehousing, and digital technologies like AI and blockchain to decreasing emissions and streamlining operations. The paper also demonstrates how sustainability has a positive impact on valuation by reducing the Total Cost of Ownership, increasing EBITDA, ESG premiums, and access to green finance instruments. The focus on MSME issues is made, and it is important to note that the country requires all-inclusive policies and new financing to speed up the development of India into a globally competitive and sustainable logistics ecosystem.