The freight and logistics in India are a constantly evolving sector and one of the major contributors to the economic growth of the country. At the same time, it causes negative externalities on account of emissions, which undermine the objective of sustainable and efficient transportation. Globally, the policymakers while acknowledging the need for green freight initiatives have wrestled with the choice of policy tools which capture the substantial environment, cost, and social benefits and thus signal a change towards greener freight options.