The logistics sector has responded positively to the Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, which emphasises infrastructure development, digitalisation, and improved connectivity, marking a significant boost for the industry.
Anshul Singhal, Managing Director of Welspun One and Chairperson of ASSOCHAM National Council on Logistics & Warehousing, praised the reduction of corporate tax rates on foreign-owned and controlled companies and simplified FDI regulations, highlighting their potential to attract significant foreign direct investment into India's expanding warehousing industry. "Setting up 100 infra nodes coupled with increased FDI will boost 'Make in India,' resulting in a leap in demand for industrial warehouses across locations," Singhal noted. He also emphasised the positive impact of town planning schemes and the National Corridor Development Program on the entire supply chain industry.
Kami Viswanathan, President of FedEx MEISA, welcomed the budget's balanced approach to infrastructure development, workforce skill-building, environmental stewardship, and digitization. "Allocating 3.4 per cent of GDP towards infrastructure, strengthening the Jan Vishwas Bill 2.0, and incentivizing states to implement Business Reform Action Plans will create seamless trade corridors," Viswanathan stated. She also highlighted the abolition of the angel tax as a boost for the startup ecosystem, fostering innovation and growth.
Ashish Agarwal, MD & CEO of Seros, appreciated the budget's focus on energy transition and sustainability, crucial for balancing economic growth with environmental goals. He highlighted the importance of ownership, leasing, and flagging reforms for the Indian shipping industry, noting that simplifying registration and incentivising ship flagging will boost the national fleet's competitiveness and create substantial employment opportunities.
Ketan Kulkarni, Chief Growth Officer of Allcargo Group, emphasised the budget's focus on job creation, skilling, agriculture, infrastructure, research, and technology. "The government has provided enough fuel for India's current growth ride, with significant Capex allocation and increased outlays in sectors like infrastructure and manufacturing," Kulkarni remarked. He also noted the positive impact of the budget's proposal to establish ecommerce export hubs, designed as bonded zones, on streamlining logistics and simplifying export clearances.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, praised the Union Budget 2024-25 for its visionary roadmap for India's economic growth. He highlighted the significant 3.4 per cent GDP allocation towards capital expenditure and the 'Purvodaya' initiative focusing on the eastern region and industrial corridors, aligning with Mahindra Logistics' mission to create a nationwide logistics network. The budget's emphasis on road connectivity projects, investment-ready industrial parks, and energy transition initiatives will enhance logistics efficiency, reduce transportation costs, and promote sustainable practices. Swaminathan also noted the focus on Digital Public Infrastructure in ecommerce and logistics, which presents opportunities for innovation and efficiency gains, aligning with Mahindra Logistics' tech-enabled solutions. He affirmed Mahindra Logistics' commitment to supporting India's growth by building futuristic, environmentally responsible supply chains that connect businesses and consumers efficiently and sustainably.
Darshan Ghodawat, MD and CEO of AVA Global Logistics, echoed these sentiments, stating that the budget's focus on strengthening vegetable supply chains through producer organisations and startups highlights a commitment to supporting agricultural growth and logistics by ensuring a robust supply chain.
Overall, the logistics sector is optimistic about the potential impact of the Union Budget 2024. The comprehensive focus on infrastructure development, digitalisation, and skill enhancement is expected to drive growth, improve operational efficiencies, and position India as a global logistics hub. The industry's leaders expressed optimism about the opportunities presented by the budget and are committed to leveraging these initiatives to drive growth and innovation in the sector.
