The Indian Budget 2023 has allocated significant resources to the logistics sector with the aim of improving efficiency and reducing costs.
The Financial Minister Nirmala Sitharaman on Wednesday noted that 100 critical transport infrastructure projects have been identified for the connection of ports, coal, steel, fertiliser, and food grains industries. She added that they will be prioritised with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources.
The budget holds great promise for the logistics industry with its focus on revitalising infrastructure and boosting the movement of goods, said Amit Maheshwari, Founder, and MD of Softlink Global
“The promotion of coastal shipping in a PPP model for both passengers and freight will further the cause of a cost-effective transportation system. Announcements from the budget that will future-proof the logistics sector also include setting up labs for 5G enabled applications development for intelligent transport systems and thrust on Green Growth in transport that will push India’s goal to become net-zero,” he said.
The logistics sector is largely driven by MSMEs and the government’s announcements on less stringent contract execution and credit guarantee schemes for MSMEs will help businesses affected by the pandemic, he added.
The DigiLocker service will facilitate secure online storage and sharing of documents, further improving efficiency in the business ecosystem. The reduction of taxes for entry and middle income groups will also encourage the industries across, he stated.
“By improving connectivity and reducing costs, businesses will have greater opportunities to reach new markets, spur innovation, and create jobs. The budget signals a commitment to a better future for the logistics industry and its positive impact on the economy and the lives of citizens,” he said.
With a tremendous economic growth of 7 per cent in the current year, the budget 2023-24 will act as quite the booster. It has focused on the investment for the development of infra projects which will further uplift the logistics system in India and will help us become enablers of effective logistic systems, said Vivek Juneja, Founder, and Managing Director at Varuna Group.
“It will support affordable regional connectivity, especially in tier-2 and 3 cities which will put the Indian economy in the direction to remain less impacted by a global slowdown. The Union Budget in turn proves to be encouraging for domestic manufacturing, job creation, and ease of doing business,” he said.
“This optimistic Union Budget of Amrit kaal is groundbreaking in itself, setting a clear ground for reformation by proposing 100 critical infrastructure projects with an investment of 75,000 crores for last and first-mile connectivity for ports, coal, steel, fertiliser, and the food-gain sector,” said Yash Jain , Co-Founder and CEO at NimbusPost.
The government has allocated 2.7 lakh crore to the Ministry of Road Transport and Highway, signifying its focus on extensive connectivity which is going to further boost the logistics industry, he added.
As per the government, these projects are targeted at increasing the efficiency and competitiveness of India’s logistics sector in the global market. The government intends to boost economic development and trade competitiveness by lowering transportation costs and boosting the ease of doing business.