The Union Budget for 2024-25 marks a significant leap in India’s journey to establish itself as a global logistics powerhouse. Key industry leaders have lauded the budget’s focus on infrastructure development, technology integration, and support for Micro, Small, and Medium Enterprises (MSMEs).
Economic Corridors
The budget outlines substantial investments in infrastructure, including the creation of new economic corridors and strategic enhancements to roads and airports. This initiative is expected to streamline logistics operations, reduce costs, and improve connectivity across key regions. The allocation of 3.4% of GDP towards infrastructure is a crucial step in fortifying India’s logistics framework, said Kami Viswanathan, President for MEISA region at FedEx.
Integrated Industrial Parks
A significant aspect of the budget is the establishment of integrated industrial parks and e-commerce export hubs, which are anticipated to boost manufacturing output, domestic consumption, and trade activities. These hubs will operate under Public-Private Partnership (PPP) models, empowering traditional artisans and MSMEs to access global markets more effectively, according to Uday Sharma, Chief Commercial Officer of Allcargo Gati Ltd.
Technological Advancements
The budget also emphasizes enhancing access to credit for MSMEs, promoting business growth, and leveraging technology. These measures are expected to act as catalysts for MSMEs, enabling them to expand operations and thrive in a competitive market. The initiatives will benefit logistics partners by facilitating smoother operations and enhanced service delivery, as highlighted by Vineet Agarwal, Managing Director of Transport Corporation of India Ltd (TCIL).
Foreign Direct Investment
India’s warehousing industry is set to attract significant foreign direct investment, promising substantial returns for investors. Anshul Singhal, Managing Director of Welspun One, emphasized that the enhanced rural critical infrastructure will boost the cold supply chain footprint, general warehousing, and transportation network, thereby optimizing operations and providing more reliable services.
Shipping Industry Reforms
The budget’s reforms in ownership, leasing, and flagging are poised to boost the Indian shipping industry’s competitiveness. Simplifying ship registration and incentivizing ship-flagging will enhance the national fleet’s competitiveness, increase India’s share in the global shipping market, and create substantial employment opportunities, stated Ashish Agarwal, spokesperson for Seros.
Competitive Landscape
The Union Budget 2024-25 has been hailed as a monumental stride in positioning India as a global logistics powerhouse. With strategic investments in infrastructure, support for MSMEs, and technological advancements, India is on a clear path towards a more robust, efficient, and globally competitive logistics landscape.
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