Presenting the Union Budget, Union Finance Minister Nirmala Sitharaman focused on MSMEs growth, allocated Rs. 26,000 cr for highway development, building industrial clusters and creating e-commerce hubs to promote local products globally. There is a need for adoption of technology in logistics business, she adds.
CT Bureau
To achieve the goal of Viksit Bharat 2047, Union Finance Minister Nirmala Sitharaman presented her record seventh consecutive Budget 2024-25 in the Lok Sabha recently. It is the first full budget by the BJP-led NDA government since it was re-elected in June. The FM’s allocation of Rs. 26,000 crore for highway development in Bihar, including the construction of a two-lane bridge over River Ganga and development of Patna-Purnea Expressway and Buxar-Bhagalpur Expressway, will benefit the highway construction sector.
Investment-ready plug-and-play industrial parks are to be developed in around 100 cities. Giving the much-needed boost to MSMEs, the Minister said the limit for MUDRA loans for MSMEs has been increased from
Rs. 10 lakh to Rs. 20 lakh for those who have availed the loans earlier and have repaid. Focusing on large-scale perishable clusters near ports and airports for full consumption, she said emphasis will be laid on pharmaceutical R&D and production. e-commerce export hubs will be set up in PPP mode to promote Indian goods globally and to facilitate cross-border trade.
Focus on e-commerce hubs will help the D2C ecosystem, including small vendors and aggregators to bring in efficiency in their operations and improve accessibility to markets, including exports. Seafood export touched all-time high of Rs. 60,000 crore, Sitharaman said, adding steps will be taken to adopt technology for digitisation of businesses.
Full of cautious optimism, long-term success
CK Govil, President, ACAAI
The Union Budget reflects a balanced approach aimed at stimulating the country’s economic growth, while addressing social welfare. Union Finance Minister Nirmala Sitharaman also emphasised infrastructure development, healthcare, and education, signalling commitment to long-term growth of the economy. However, some of the critics argue that the Budget falls short on addressing immediate economic challenges and income inequality India is currently facing. Overall, the Union Budget is a mixture of ambitious projects and cautious optimism, seeking to navigate the country’s post-pandemic recovery.”
Outlays for many sectors sans changing CAPEX
Ketan Kulkarni, Chief Growth Officer, Allcargo Group
Union Finance Minister Nirmala Sitharaman provided enough fuel for India’s current growth ride. With the Union Budget focussing on job creation and skilling, agriculture, infrastructure, research and technology, the ride should gain momentum. Without changing CAPEX allocation increased outlays in many sectors such as infra and manufacturing will boost spending. The government has reiterated its determination to pull down the fiscal deficit in coming years. As every sector has something to cheer about, logistics should gain from the overall growth trajectory. The positivity spurred the Budget to be balanced, positive and forward-looking.”
Strengthening MSMEs, skilling were prioritised
Gayomard Driver, Executive Director & Group CFO, Jeena and Co.,
The Budgetary proposals are beneficial for the logistics industry. It addresses certain aspects of the industry—skilling, empowering MSMEs, manufacturing, and a review of the rate structure for ease of trade. The removal of duty inversion and reduction of disputes are good steps. Setting up of Gaya node on Amritsar-Kolkata route may improve Eastern Dedicated Freight Corridor. This move will boost ports in eastern India over medium-term. Enhancing rural infra and support for an industrial corridor in the eastern region are vital steps forward. India’s plan to set up e-commerce export hubs will streamline logistics and warehousing.”
Sanction of 12 industrial parks is noteworthy step
KK Agarwal, CMD, CJ Darcl Logistics
The Budget comes with an approach to bolster India’s logistics and infra sectors. This expenditure will promote the development of new economic activity, improve transportation accessibility, and lower transportation expenses. Road linkage projects, Patna-Purnea and Buxar-Bhagalpur expressways and Amritsar-Kolkata Industrial Corridor, and sanction of 12 industrial parks are noteworthy. This approach aligns with our vision for a resilient, efficient, and technologically advanced logistics ecosystem. We will continue to provide cooperation to the government for developing a sustainable, transparent, and digital logistics system.”
Positive Budget to make India logistics powerhouse
Sunil Kohli, MD, Rahat Cargo
The Budget has focused on infrastructure, manufacturing, and skilling, which are vital for long-term development. This allocation aims to establish India as a global logistics and manufacturing power centre. The budget convincingly reflects optimism about supporting innovative entrepreneurs in this ecosystem. The govt’s initiative to set up e-commerce export hubs to aid MSMEs in exporting local products is will drive growth. The creation of industrial centres in Gaya in Bihar under the ‘Vikas bhi, Virasat bhi’ scheme is likely to boost infrastructure development and subsequent creation of employment.”
AP, Bihar have potential to reduce logistics costs
Satish Lakkaraju, CEO, Garudavega NexGen Logistics
The Union Budget has focussed on states such as Andhra Pradesh, which have the potential to bring the overall logistics cost down. The Budget has touched important aspect of infrastructure and allocating Rs11.11 lakh crore for capital expenditure, which will boost development and participation from the state government as well. Another state, Bihar will receive a substantial Rs26,000 crore that will help in the development of key infrastructure projects along with the Visakhapatnam-Chennai Industrial Corridor. The coastline of Andhra Pradesh and the development of the industrial corridor will boost the logistics industry as well.”
Infrastructure investment to cut cost of operations
Yashpal Sharma, Managing Director Skyways Group
The budgetary proposals present opportunities for the air cargo industry. The freight forwarders view the Union Budget with a mixture of optimism and planning, recognise initiatives that align with their aspirations for growth, efficiency, and global competitiveness. The allocation of Rs1.48 crore in skilling and education will create skilled workforce. The infra investments will bring down cost of operations. The relaxation in export-import periods for components sent for repair to MRO industry can reduce aircraft downtime, beneficial for cargo operations. Tax reductions and higher disposable incomes can stimulate demand.”
R&D, innovation to boost marine industry
Chaitaly Mehta, Director, EKF Global Logistics
Emphasis being laid on MSMEs will ease their functioning as well as facilities to become successful. Govt moves on skilling programmes and job generation are the need of the hour. Understanding the importance of innovation, R&D and facilitating these with a boost to the marine industry are beneficial. India, one of the largest exporters of shrimps, will solidify its position and invite women to join the workforce. Making provisions such as creche and accommodations would help more women travel for jobs. Personally speaking, the government had its ears to the ground after the elections and it has paid off with the forward-looking Union Budget.”
States, private sector can accelerate development
Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group
IndoSpace complemented the government for taking the necessary steps towards developing investment-ready plug-and-play industrial parks with comprehensive infrastructure in as many as 100 cities. Together with the state governments and the private sector, this pioneering step has the potential to transform both industrial development as well as urban planning in a better manner. Under the National Industrial Corridor Development Programme (NICDP), these certain projects are going to serve as vibrant economic centres that drive would development as well as innovation, which is poised to create an everlasting impact.”
