2022 was a year of recovery and growth for the Indian logistics industry, with tangible signs of revival and resilience demonstrated in the development of demand and supply across the country. The recovery was driven mainly by demands from end-users for national and international customers.
The logistics industry has welcomed the government’s proposal to increase the capital investment outlay by 33% to Rs 10 lakh crore in the union budget 2023-24, claiming that the emphasis on building infrastructure will strengthen India’s position in the global supply chain.
We bring you viewpoints of industry players in the logistics sector.
Soham Chokshi – CEO and Co-founder, Shipsy
At Shipsy, we are excited to see the Indian Government’s continued commitment to promoting entrepreneurship and investment in the infrastructure sector through the Union Budget 2023. Extending income tax benefits and other relaxations will further help start-ups drive growth. The allocation of funds for critical transport infrastructure projects and the revival of regional air connectivity will modernize the logistics industry, drive greater adoption of multimodal transportation and improve supply chain efficiency. The push toward enhancing India’s 5G ecosystem will further accelerate digital transformation in the transportation management sector. We look forward to playing our part in making India rank among the top 25 countries by 2030 in the Logistics Performance Index.
Raaja Kanwar, Chairman and Managing Director, Apollo Supply Chain and Apollo International Limited
“The Union Budget 2023 lays out a credible roadmap towards the development of transport infrastructure and last-mile connectivity. We congratulate the budget for making Green Growth one of the top 7 priorities, focusing on ease of doing business. As, Apollo Supply chain, we look forward to resolving the inefficiencies in the country’s supply chain.
MOVIN
The budget is in line with the government’s long-term goal of having a successful and integrated logistics industry. This industry will be more competitive with this budget. The effective multimodal connectivity initiative will act as a catalyst for the overall sector’s improvement. Logistics is established as a major economic pillar by the government’s emphasis on the railway infrastructure and crucial transport projects for first and last mile delivery of the specified sectors. Additionally, the emphasis on upskilling people and introduction of the digital infrastructure will lead to more young employment in this sector, establishing a complete ecosystem. This would help in lowering the cost of logistics while also facilitating trade and bringing India into compliance with international standards.
Pranav Goel, Co-founder & CEO, Porter
Welcoming the Union Budget 2023, we applaud the extremely well-thought and positive development measures taken by the Government of India to further the roadmap for sustainable growth and incentivize the industry for adopting sustainable practices.
The investment plan of INR 75,000 crore for 100 critical transport infra projects including the capital outlay of Rs 2.40 lakh crore for railways will enhance the multimodal logistics ecosystem, aiding the sector to be more streamlined.
We are elated with the move to expand the scope of Digilocker. With this, the KYC process will be simplified and the move to use Permanent Account Number (PAN) as a common identifier for all Digital Systems of specified government agencies will encourage an efficient maintenance system for enterprises and MSMEs moving forward.
Moreover, with the revamped credit guarantee for the engines of our economy, MSMEs will have the right access to growth, thereby enabling the nation’s growth.
The push for green growth in budget 2023, promoting green energy, green mobility including other sustainable initiatives, will help in reducing carbon intensity of the economy and will provide for large green-scale job opportunities. Policy interventions like replacing the old polluting vehicle will pave the way for efficient use of energy across the sustainable logistics ecosystem.
Deepak Shrivastava – Managing Director – Indian Subcontinent, UPS
“The Union Budget for 2023 recognises the strides taken by the Indian economy to be the fifth largest in the world and reinforces a sustainable economic development agenda for the future.
Action on strengthening infrastructure and supporting MSMEs will help speed up supply chain growth and boost cross-border trade. The plan to set up more airports and heliports, and proposed urban infrastructure investment for tier two and three cities will strengthen regional connectivity, which is important to facilitate trade. Exports are key for global trade and the logistics sector to be globally competitive to support India’s target of a $5 trillion economy. Reduction in customs duties for certain sectors will support the government’s target of an exponential jump in goods and services exports.
MSMEs are crucial not just for the logistics industry but also for the overall economic growth of India. Therefore, it’s good news that the government has focussed on its finance requirements with a revamped credit guarantee scheme and access to collateral free loans.
It’s also extremely encouraging to see the push toward green growth. It signals a clear shift and focus on sustainability and the environment.
Overall, integrated planning, coordinated implementation of projects and a supportive policy framework will be extremely important and will likely have a positive long-term impact for the logistics sector.”