A view of the industrial and logistics park at Chakan, Pune.
| Photo Credit: Special Arrangement
Logistics industry is expecting steps that will further improve ease of doing business in the country, incentives and benefits for green initiatives in the sector, among others, in the Union Budget for 2024-25, which is set to be presented by the Finance Minister Nirmala Sitharaman in the Parliament next week.
“There is significant scope to improve the ease of doing business by streamlining regulations and adopting digital processes. Simplifying and ensuring consistency in GST administration, greater clarity and standardisation in interpretation of customs procedures, and TDS regulations are crucial steps in this direction,” said R S Subramanian, Senior Vice President & Managing Director, DHL Express India.
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“I am optimistic that the Budget will prioritise infrastructure and logistics as critical levers of growth, consistent with the interim Budget,” said Rizwan Soomar, Chief Executive Officer and Managing Director, DP World North Africa and India Subcontinent.
“The Budget could include incentives and benefits for green initiatives in logistics which aligns with the overall decarbonisation goals of the government and the private sector,” Mr. Soomar said.
Streamlining the existing regulatory frameworks further will encourage greater private sector participation and innovation in logistics, he added.
“We anticipate seeing significant investments throughout the industry in multi-modal connectivity, including advanced air cargo terminals and infrastructure enhancements to create seamless trade corridors.
“We also anticipate a continued focus on trade facilitation, streamlining and digitising clearance processes, minimising delays and enhancing cargo movement efficiency,” said Kami Viswanathan, President, FedEx for MEISA region.
“As we approach the Union Budget 2024-25 announcement, TCI is optimistic about the government’s commitment to bolstering the logistics sector. Emphasis on infrastructure development, streamlined regulations, workforce upskilling, and enhanced investment in technology will drive efficiency and sustainability,” TCI Managing Director Vineet Agarwal said.
Policy to support innovation
TCI is looking forward to policies that support innovation and ease of doing business, ultimately contributing to the nation’s economic resurgence, he said.
Stating that Interem Relocations is optimistic about the continued emphasis on infrastructure development, technological integration, and policy reforms, company’s Group CEO Vishal Agarwal said, “We are particularly hopeful about the inclusion of diesel under the GST ambit, which would greatly aid in cost regulation.”
Locus.sh Founder & CEO Nishith Rastogi said, “Beyond infrastructure enhancements and tax reforms, there is an urgent need for strategic resource allocation to adapt to market dynamics, including fuel price fluctuations and supply chain disruptions… Additionally, incentives for green logistics and digital infrastructure development will be key to achieving our long-term goals.” “Continued government support is essential to foster innovation and assist startups in navigating this evolving landscape, ensuring that the sector remains competitive and resilient,” he said.
“Important areas of concentration include making large infrastructure expenditures to improve efficiency, such as building multimodal logistics parks and designated freight corridors. For enhanced operations and transparency, embracing technology like AI and IoT needs incentives,” iThink Logistics Co-founder Zaiba Sarang said.
Streamlining the GST system and encouraging sustainability by using electric cars and other eco-friendly activities is also essential.
Innovation and growth will also be fuelled by assistance for SMEs, startups, and skill development as well as by encouraging public-private collaborations and streamlining regulatory procedures, she said.
“By addressing these issues, the industry will contribute more to India’s economic development,” Ms. Sarang added.
