Budget 2023: Logistics Sector Revival
Budget 2023: Logistics Sector Revival for the Indian logistics industry! 2022 was a year of recovery and expansion, with substantial proof of revival and resilience evident in the development of demand and supply across the country. The recovery was primarily driven by end-user demand for national and international consumers.
On the bright side! the Indian Budget 2023 has dedicated large resources to the logistics sector in order to improve efficiency and reduce costs.
Smt. Nirmala Sitharaman, the Finance Minister, announced on Wednesday that 100 essential transport infrastructure projects have been identified to connect ports, coal, and steel, fertilizer, and food grains businesses. She stated that they will be prioritized with Rs 75,000 crore investment! including Rs 15,000 crore from private sources.
The logistics sector has been allotted significant funding in the Indian Budget 2023 with the goal of enhancing efficiency and lowering costs. The finance minister has also identified four priority areas for sustainable infrastructure development.
The PM Gati Shakti National Master Plan (PMGS-NMP) is the most important of these, focusing on seven engines: roads, railways, airports, ports, mass transportation, waterways, and logistics infrastructure. Building synergies between these seven engines will allow for faster and more efficient flow of commodities and people.
The master plan, which is a critical component of fulfilling the National Logistics Policy’s goals, strives to streamline the infrastructure planning of central and state government ministries and agencies.
In addition, the budget has fully covered infrastructure development by spending INR 75,000 crore, including private investment, to improve first- and last-mile delivery.
As members of the logistics industry! it is fulfilling to hear the announcement of these provisions because they will help solve the industry’s current connectivity issues while also laying the groundwork for a more sustainable future for logistics! in which efficiency and environmental responsibility coexist to form a sustainable ecosystem.
According to the Ministry of Commerce and Industry, these projects aim to improve the efficiency and competitiveness of India’s logistics sector in the global market! hence improving the country’s GDP.
By cutting transportation costs and improving the ease of doing business! the government wants to improve economic development and trade competitiveness.
The budget holds great promise for the logistics industry with its focus on revitalizing infrastructure and boosting the movement of goods, said Amit Maheshwari, Founder, and MD of Softlink Global.
Here are some responses from business leaders to the pre- and post-budget periods Budget 2023: Logistics Sector Revival:
Sanjay Viswanathan, CEO of Adi Group:
“As G20 President, India is committing leadership on advancing the Green Economy. The daring Budget of today allots $4.0 billion to make green hydrogen the main fuel source. Adi Energy will work with India to set the standard for other countries to follow! with a target of 5 MMT from green hydrogen by 2030 and green credits to industry. By 2030! India’s green hydrogen industry could be worth a trillion dollars and provide energy security. In addition, the development of a digital marketplace for farmers, the introduction of new technology (such as drones)! and start-up funding will significantly boost innovation and farmer productivity and income. Drones, AI, and funding will be provided by Adi Agri-Tech.
Krishna Bodanapu, MD & CEO of Cyient said:
“It is a good budget that balances the three pillars of the Indian economy—agriculture, manufacturing, and services,” said Krishna Bodanapu, MD & CEO of Cyient. The emphasis on accelerating technology with initiatives in 5G labs, agricultural tech, and AI! along with long-term investments with a notable increase in capital expenditure! is extremely encouraging.
The government is looking at ways that technology can help everyone and is taking adoption and usage very seriously. Therefore, investing in and concentrating on technology-related initiatives! including future skill development and training, is a good step forward. The immediate spending and the thriving ecosystem it will create will be extremely beneficial to the technology solutions sector.
