 "Budget 2023 revitalises logistics Industry, paves way for growth and progress")
The logistics industry is an integral part of the Indian economy, as it plays a vital role in the movement of goods and services for both domestic and international trade. In the last few years, the sector has witnessed massive digitalisation. Powered by the National Logistics policy, the sector had started to get future-ready for promoting India’s next economic growth. Budget 2023 announcements have further bolstered the cause of this industry. With announcements that will have a direct and positive impact on Logistics and Supply Chain Management sector, the sector has reasons to rejoice.
Boost for infrastructural development:
The government has identified 100 critical transport infrastructure projects, for last and first-mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. The total investment earmarked is Rs 75,000 crore with Rs 15,000 crore from private sources. Transport infrastructure projects on such a large scale with public and private integrated investment is a novel and practical outline for creating a robust future for the sector.
The addition of 50 airports, heliports, water aerodromes, and advanced landing grounds will be revived for improving regional air connectivity. This will utilise the domestic airspace covering the huge landscape in a shorter time, thus reducing the cost of logistics. This will ultimately result in creating synchronized trading internally which will create a more competitive export system for India, globally.
Promoting coastal shipping
The promotion of coastal shipping in a PPP model for both passengers and freight will further the cause of a cost-effective transportation system. The government has announced Viability Gap Funding (VGF) which will ensure more MSMEs come to fill in the space, thus creating more jobs
Impact Shorts
More ShortsEase of Doing Business
One of the key focuses of the Budget was to ease the process of doing business in India. The government has introduced several initiatives that will support small and medium enterprises (SMEs) and encourage trade. The government’s announcements on less stringent contract execution and credit guarantee schemes for MSMEs will help businesses affected by the pandemic. The DigiLocker service will facilitate secure online storage and sharing of documents, further improving efficiency in the business ecosystem.
This will help to create a more favourable environment for businesses to operate in and will help to boost economic growth. For the logistics sector, this will mean lower costs and increased efficiency, as the government will be streamlining various procedures and reducing the number of approvals required for businesses.
Adoption of AI and 5G
The government has also announced its focus on setting up more adoption of AI and 5G, which will require a more skilled talent pool. This will help to improve the efficiency of the logistics sector, as well as help businesses keep up with the latest technology. This will help to create a more skilled workforce in the logistics sector, which will support its growth and development.
Promoting online learning
The budget has also included measures to promote online learning, with the government announcing its mission Karmayaogi platform. This platform will provide online training and development opportunities for government bureaucrats, helping them to keep up with the latest technology and advancements in the logistics sector.
Job creation and attracting talent
The infrastructural announcements and implementations will create new jobs in the sector. The development of these facilities will also help to create new job opportunities in the logistics sector and will support the growth of the industry as a whole. Plus, the reduction in personal taxes will positively impact this sector and others likewise – as it will create a more stable bottom of the workforce pyramid.
The Budget 2023 has made focused, thought-through announcements for the logistics sector, making it a vehicle for the next big economic growth in the country. With the focus on ease of doing business, infrastructure development, adoption of AI and 5G, and promoting online learning, the logistics sector is poised for significant growth and development in the coming years.
The measures announced in the Union Budget will help to bring efficiency and reduce costs in the logistics sector, making it easier for businesses to operate and helping to drive economic growth. The government’s support for the logistics sector is an encouraging sign for the industry and will help to create a more favourable environment for businesses to operate in, thereby supporting the growth and development of the Indian economy.
The writer is Founder and MD, Softlink Global. He tweets @Softlinkglobal. Views expressed are personal.
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