Being an election year, Finance Minister Nirmala Sitharaman will present an interim budget in Lok Sabha and logistics industry leaders have their specific suggestions for the budget, as mentioned below:
Mahendra Shah, Chairman and Managing Director, V-Trans (India) Ltd
“Attention of the current Government has been substantial on enhancing logistic and supply chain efficiency. We expect policymakers to support the same further and also take steps to reduce supply chain costs. Many measures taken to boost manufacturing have started showing results and an efficient supply chain will boost the cause further. In the forthcoming budget, we look forward to improved outlay for logistics Infrastructure. Regulatory and budgetary support for Fast-tracking multimodal logistics infrastructure projects is needed. In the last year, ULIP has already been operational, but the need of the hour is its faster adoption across the stakeholders. In the forthcoming budget, steps for easy usage of ULIP will help in waste reduction and improve interoperability in logistics. Logistics is a sector that has a significant contribution to carbon emissions. We look ahead towards the initiatives for faster adoption of green logistics. Incentives and easier access to funds for the adoption of sustainable logistics can be a good option to move forward.”
“Being a major player in road transportation, we would like to draw the attention of the Government towards issues related to drivers. The government needs to introduce some schemes in the logistics industry for drivers. Last but not least will be bringing petroleum products under the purview of GST. Fuel is the largest component of our expenses. Once the industry gets input credit benefit on fuel, it will be a major boost,” adds Mahendra Shah.
Ashvini Jakhar, Founder & CEO, Prozo
“More attention is now required towards promoting the development of logistics technology. The future growth of logistics will be largely shaped by the efficiency, resource optimisation, and how resilient our supply chains can be. Therefore, it is imperative that the government extends support to companies which are engaged in the formulation of integrated supply chain facilities, including warehouses, green last-mile delivery networks, and innovations like AI-powered Supply Chain Management (SCM) solutions. This strategic focus will not only propel the industry to take a giant leap forward but also position India as a global leader in logistics and supply chain excellence.”
He adds, “The government’s focus in recent years has been on advancing multimodal logistics and projects for road construction, railway enhancement, dedicated freight corridors, and air/water connectivity have seen a major boost in order to accelerate the growth in the logistics industry and fortify essential infrastructure. However, there is still a pressing need to expedite the growth of the logistics industry and develop the right infrastructure in India.”
According to Jakhar, by promoting connectivity through multimodal transport facilities and encouraging last-mile delivery solutions provided by private sector SCM companies, one can not only reduce the cost of logistics, and make the industry globally competitive but also diminish the carbon footprint of the transportation sector in India.
Ratheesh D, Director, CABT Logistics- First Mile, Mid Mile & Last Mile services
“The logistics industry has grown and matured from being a transportation and storage-focused services provider to offer specialised functions that now encompasses end-to-end product planning and management, offering value-added services for first and last-mile delivery, predictive planning, and data analysis.”
“The government should focus on bolstering India’s position as a global manufacturing hub, and become a viable alternative to China. This strategic move will set the path forward to propel significant growth in the maritime and logistics sector. The government has initiated significant multimodal infrastructure projects with a specific focus on fortifying logistics. Effective budgetary strategies, including financial incentives coupled with investments in infrastructure projects to reduce logistics costs, are crucial,” adds Ratheesh.
Sanjeev Srivastva, Chairman & Founder, Assotech Group
“As we stand on the brink of a new fiscal year, the anticipation surrounding the 2024 budget is palpable, particularly within the real estate sector. This budget holds the promise of being a catalyst for transformative change, steering the industry towards greater resilience and sustainability. As the Chairman and Founder of Assotech Group, my perspective is shaped by not only the potential impact on our endeavors but also the broader implications for the real estate landscape in India.
The government’s commitment to affordable housing and sustainable development has been a cornerstone of recent budgets. The forthcoming budget presents a unique opportunity to build upon these foundations, providing a strategic roadmap that fosters innovation, addresses sector-specific challenges, and nurtures a conducive environment for growth.
Affordable housing remains a pivotal focus, and I am hopeful that the budget will introduce measures that further incentivize developers to participate actively in this segment. Streamlining regulatory processes and offering financial incentives for sustainable practices can go a long way in ensuring the accessibility of affordable homes to a larger section of the population.
Moreover, the real estate sector is ripe for technological integration. In a rapidly evolving digital landscape, the budget could introduce measures to encourage the adoption of smart technologies, not only in construction but also in the management and operation of real estate assets. This shift towards technology can enhance efficiency, reduce costs, and contribute to the overall modernization of the sector.
In line with the government’s commitment to sustainable development, I hope to see the budget incentivizing eco-friendly practices within the real estate industry. Initiatives that encourage the use of green construction materials, promote energy-efficient designs, and reward sustainable certifications can pave the way for a more environmentally conscious and responsible real estate sector.
As we navigate the challenges of a rapidly changing landscape, the budget can play a pivotal role in addressing liquidity concerns. Measures to enhance liquidity, especially for mid-sized and small developers, can inject a much-needed boost into the sector, fostering a more inclusive and robust real estate ecosystem.
In conclusion, the 2024 budget presents an opportune moment for the government to shape the trajectory of the real estate sector. By focusing on affordability, sustainability, technological innovation, and liquidity enhancement, the budget can serve as a blueprint for a resilient and thriving real estate industry. As a stakeholder deeply invested in the growth and development of the sector, I am optimistic about the positive changes the budget could usher in, propelling Indian real estate into a brighter and more sustainable future.”
Vipin Vohra, Chairman, Continental Carriers Pvt Ltd
“In the forthcoming budget, Finance Minister Ms Nirmala Sitharaman faces the challenge of charting India’s economic trajectory in an election year. Acknowledging the nation’s aspirations to become the third-largest economy by 2030, this interim budget serves as a pivotal guide for the road ahead. With favourable conditions of low inflation and robust GDP growth, the government’s focus on the ‘Make in India,’ ‘Digital India,’ and ‘Start-Up India’ initiatives has attracted multinational corporations, propelling economic expansion.
The logistics industry, a crucial driver of economic efficiency, anticipates key policy measures to streamline operations. Expectations include simplified regulations, a ‘single window’ for approvals, and a reconsideration of permanent GST exemptions for international transportation services. The budget strategy must align with the PLI schemes and infrastructure investments to mitigate domestic logistics costs and enhance India’s supply chain efficiency, addressing current disparities in global Logistics Performance Index rankings.
Additionally, the implementation of the National Logistics Policy and ‘Make in India’ schemes necessitates the alleviation of congestion at international airports. The budget should incentivize off-airport cargo handling locations to ease this strain. Furthermore, a growing call for increased budgetary allocations towards upskilling and vocational training highlights the need to bridge the skill gap and empower the workforce for effective utilization of emerging technologies in the logistics sector. Rationalizing and simplifying cargo movement costs, fostering an ‘Open Sky Policy,’ and tapping into the commercial potential of Tier II and Tier III cities are essential components for India to achieve its ambitious 10 MMT annual cargo throughput target by 2030.”
Deepak Tiwari, CEO, KSH Logistics
“In the 2024 budget, we look forward to transformative measures that can propel the logistics and warehousing industry into a new era of efficiency and inclusivity.
Labour law reform is a critical aspect of streamlining operations. Also, reduced interest rates for investments in CAPEX, Automation, and Technology will not only stimulate growth but also drive innovation within the industry. We hope for financial incentives that promote gender neutrality, encouraging the employment of more women and the third gender, and fostering a diverse and inclusive workforce. Furthermore, an infrastructure push in Tier 2 cities will not only decongest urban centres but also create new hubs for warehousing, facilitating better regional connectivity. As we await the budget announcement, we look forward to a roadmap that supports our vision for a progressive, technologically advanced, and inclusive future in the warehousing sector.”
