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 revitalising infrastructure and boosting the movement of goods, said Amit Maheshwari, Founder, and MD of Softlink Global.