Union Budget 2024-25: A Monumental Stride Towards Global Logistics Leadership

The Union Budget for 2024-25 aims to position India as a global logistics leader by focusing on infrastructure development, leveraging technology, and supporting MSMEs. Key measures include new economic corridors, integrated industrial parks, and e-commerce export hubs. Industry leaders praise the budget for boosting connectivity, reducing costs, and enhancing trade.

The Union Budget for 2024-25 represents a monumental stride towards positioning India as a global logistics powerhouse, with a focus on infrastructure development, leveraging technology, and supporting MSMEs, sector executives announced on Tuesday.

UPS Managing Director in India, Gregory Goba Ble, lauded the budget for hitting all the right notes, particularly in terms of developing infrastructure, leveraging technology, and supporting traditional artisans through innovative measures such as e-commerce export hubs. He highlighted that the initiatives for infrastructure development, including new economic corridors and strategic investments in roads and airports, are poised to streamline logistics operations, reduce costs, and enhance connectivity, paving the way for a robust and competitive logistics landscape in India.

Rizwan Soomar, CEO and Managing Director at DP World North Africa and India Subcontinent, added that establishing more integrated industrial parks and e-commerce export hubs will facilitate manufacturing output, boost domestic consumption, and enhance trade logistics activity. Lower corporate tax rates on foreign companies are anticipated to attract overseas companies and investments.

Kami Viswanathan, President for MEISA region at FedEx, emphasized that allocating 3.4 per cent of GDP towards infrastructure and incentivising states to implement Business Reform Action Plans will create seamless trade corridors. Uday Sharma, Chief Commercial Officer of Allcargo Gati Ltd., noted that enhancing credit access and promoting business growth will catalyze MSMEs' expansion, benefiting logistics partners by streamlining operations and service delivery.

Anshul Singhal from Welspun One predicted that India's expanding warehousing industry will attract significant foreign direct investment, while Vineet Agarwal from Transport Corporation of India Ltd. praised the enhancement of rural infrastructure and establishment of e-commerce hubs for boosting global competitiveness and exports.

Gayomard Driver of Jeena and Company pointed out that the new Gaya node along the Amritsar-Kolkata route will improve the Eastern Dedicated Freight Corridor. Seros MD & CEO Ashish Agarwal added that ownership, leasing, and flagging reforms will boost the Indian shipping industry, making it more competitive globally and creating substantial employment opportunities.

(With inputs from agencies.)