Sustainable Supply Chain: Myths and Facts in India

October 15, 2026

Sustainable supply chain creation has now become an absolute necessity for businesses in India. Consumer behaviour is driving this shift more than regulation ever could. As much as 77% of Indian consumers now say they would rather buy from environmentally responsible brands. Yet despite this clear market signal, a surprising number of businesses remain hesitant to act, often held back not by resources but by a lack of clarity around what sustainability actually demands of them, and by myths that have quietly shaped how they think about it. In this blog, we unpack some of the most persistent misconceptions around sustainable supply chains and set the record straight with what the evidence actually shows.

Myth 1: Sustainability Is Only About Reducing Plastic

This may be one of the most common misconceptions. Many organisations only consider the packaging of their products and believe that they have done enough. But sustainable supply chains consist of so much more, including:

1- The manner in which products are transported across the nation
2- Energy use within the warehouse
3- Procurement at the source
4- Emissions accounting across the entire value chain

Cutting plastic is a good start. It is not the finish line. Sustainable procurement involves selecting partners that follow ethical labour practices, use renewable sources of energy, and minimise waste at the point of production. Without this, no sustainable supply chain can be complete, regardless of how green the packaging is.

Myth 2: Logistics Decarbonisation Is Too Expensive

This is the main reason why most SMEs do not attempt anything. The assumption is that building a sustainable supply chain requires massive capital investment that only large corporations can afford.

Nothing could be further from the truth. Logistics decarbonisation starts with simple actions like:

1- Route optimisation that will reduce fuel usage
2- Fleet consolidation that will reduce the number of trips
3- Energy efficiency in the warehouses to reduce electricity costs

Governments and banks are already providing a number of incentives and green funding to support companies on their way to building a sustainable supply chain. The cost of ignoring sustainable supply chain goals, both reputationally and regulatorily, is often far higher in the long run.

Myth 3: Zero Emission Freight Is Not Viable in India

Most logistics organisations do not see zero emission freight as an immediate reality in India. They argue that infrastructural deficiencies are a cause for postponing the construction of a sustainable supply chain.

But studies show that a faster transition to zero-emission transport could save close to 8.8 million lives worldwide from premature death between 2024 and 2050. Several fleet operators are taking this seriously. Many of them have started zero emission trucking in India. The arrival of electric trucks in India by both Indian and foreign manufacturers has opened up some great options.

Various companies are using electric commercial vehicles. Charging infrastructure is being built up in industrial belts. The first-movers are creating sustainable supply chain advantages that the latecomers would find difficult to duplicate.

Myth 4: Alternative Fuel Vehicles Are Not Ready for Indian Roads

There is a common belief that alternative fuel vehicles (AFV) in logistics are not feasible or viable for the Indian scenario. This perspective is an outdated one.

This is the reality of the situation as it exists now:

1- CNG-fuelled trucks have been running in India’s cities for some time now.
2- Fuel cell vehicles using hydrogen are being experimented with for heavy-duty usage.
3- LNG and biofuels are becoming popular in long-distance transportation.

These are all real examples of implementation. To ignore AFVs would be to ignore a genuine transformation in progress within India’s sustainable supply chain domain.

Myth 5: Greenwashing in Logistics Is Easy to Spot

Many businesses assume that greenwashing in logistics is obvious and that consumers will always see through vague claims.

On the contrary, greenwashing tends to be discreet. In many cases, greenwashing occurs when companies use phrases such as “eco-friendly” without proper certification. In other cases, companies present one eco-friendly idea while maintaining inefficient practices within their sustainable supply chains.

For both organisations and consumers, the important thing is to seek out:

1- Reliable information that is supported by legitimate frameworks
2- Credible third-party certification from recognised organisations
3- Public reporting of carbon emissions

If an organisation cannot demonstrate the statistics behind their claims of a sustainable supply chain, then do not believe them.

Myth 6: Responsible Logistics Slows Down Operations

Many operations managers are concerned that responsible logistics practices will lead to delays. They consider a sustainable supply chain a hindrance as opposed to a benefit.

Fortunately, that mentality is shifting. Responsible practices tend to boost efficiency in the following ways:

1- Effective routing helps save time and fuel
2- Fleet management helps prevent expensive breakdowns
3- Clear processes help prevent logistics disruptions

Responsible logistics is not at all about slowing things down. Rather, it is about creating a sustainable supply chain.

Myth 7: Sustainable Mobility Is Only About Electric Vehicles

Most people understand sustainable mobility is only about EVs. But a sustainable supply chain includes more than that. Some of the elements involved include the following:

1- Multimodal transport solutions that reduce road congestion
2- Better use of rail and inland waterways for bulk freight
3- Smarter last-mile delivery models like cargo bikes and micro-fulfilment centres

The diverse geographical nature of India makes it impossible for there to be one solution to all problems. A genuinely sustainable supply chain requires solutions tailored to specific corridors, cargo types, and operational realities.

Conclusion

Supply chain sustainability in India is not a trend but rather a necessity. There are many misconceptions that do nothing more than hinder progress. Every aspect has its part to play in creating a sustainable supply chain that benefits both the economy and the environment. The companies that take action now will have a much easier time competing down the road.