Union Budget of India which is announced on 1st February of every year plays an significant role in boosting the economy and a guideline to growth. Government has been continuously focussed on improvement in the Logistics Sector with recent policies in the recent years like Gati Shakti, NLP 2021, NLP 2022, National Air Cargo Policy which has been a great welcome move by the Logistics and Supply Chain industry. The logistics industry has applauded the budget announcements as there seems to be a lot of focus on infrastructure development , transport projects, ease of doing business etc.

The highlights of the same which will boost the industry are praiseworthy. This clearly would work as a catalyst to reduce the logistics cost, speed up growth and take the country near to the vision of being the third logistics economy.

• 100 critical transport infrastructure projects, for the last and first mile connectivity for ports, coal, steel, fertilizer & food grains sector. This will have a positive impact on the nations last and first mile connectivity
• Capital Investments Outlay on transportation infrastructure is a whopping 2.40 K crores on Railways, .1.62 K crores on Roads & 10k Crores on urban India infra development.
• Focus of the Government will help solve the current connectivity issues and building more sustainable future for the logistics sector
• 58 additional airports, heliports, Water Aero drums and Advanced Landing Grounds to boost regional connectivity which will ultimately improve logistics to this Tier 3 & Tier 4 cities in India establishing comprehensive air connectivity.
• Announcement of setting up Urban Investment Development Fund (UIDF) for the Tier 2 and Tier 3 cities will provide greater boost for efficient logistics transportation and enhance greater connectivity
• Finance Minister announced the new 100 projects will be taken up on priority with an investment of Rs 75000 Crore , including Rs 15000 crore from private sources. This will help speed up India’s growth story
• Development of Private participation is a welcome move as this will bring traction of private investments necessary for India’s growth
• Announcements were in line with the NLP 2022 demonstrating the Governments commitment and focus to the logistics sector.
• Infrastructure and investment was one of the seven priorities listed by the budget and the capital investment outlay increased steeply for the third year in a row by 33% to Rs 10 lacs crores which would be 3.3 % of the GDP
• Focus on sustainability by focusing on Green Mobility investment of Rs 19700 Crore for the National Green Hydrogen Mission, Setting up battery energy storage of 4000 MWH with viability gap funding, reduction of custom duty on imports of capital goods for Urban battery, Coastal Shipping Promotion as Energy Efficient Mode.
• Setting up of Skill development centres across states which would directly help the logistics sector too
• Focus on Digital Infrastructure especially in the Agri sector thus enhancing the visibility which was lacking in a big way till now.
• Capital 2.40 Lack crore record outlay for the Indian Railways will provide the necessary impetus to programmes like Dedicated Freight Corridor projects critical to logistics improvement all across
• Ease of doing business as the budget has reduced 39000+ compliances and decriminalised 3400+ legal provisions.
• Revamped guarantee scheme for the MSME’s proposed in the previous budget will take effect from April1, 2023 through the infusion of Rs 9000 Crore in Corpus
• Reduction in basic customs duty for goods from 21 to 13 percent will bolster foreign trade while creating global acceptance for Indian brands

So, above initiatives, focus and the strong will of the government will not only help the overall logistics Industry in improvement, move towards reduction in logistics cost and would certainly take the country towards being the third largest economy in the world. Giving importance to the logistics industry has also helped in growing acceptance of logistics professionals as key to success of any organisation, more and more business institutes and skill development centres opening all across the country is a matter of pride for the SCM fraternity.