Expectations for the Logistics Union Budget in 2025

1.CCI Group

“The logistics industry now anticipates more progressive measures in the Union Budget 2025, even though the Union Budget 2024 was successful due to the successful implementation of the PM Gati Shakti program, the Western Dedicated Freight Corridor, and the National Logistics Policy.

With the help of financial assistance and tax incentives, we expect a significant emphasis on encouraging the use of cutting-edge technologies like IoT, AI, automation, robots, and 5G. Public-Private Partnerships (PPP) will be essential in accelerating the development of tech-driven infrastructure, such as IoT-enabled transport systems, smart logistics parks, and cutting-edge port and highway technology.

The use of single-window clearance systems is anticipated to improve international competitiveness by expediting cross-border commerce and obtaining timely permissions from several government authorities. In order to promote a greener, more effective ecosystem, we also expect a rise in capital spending on green technology and sustainable infrastructure, such as electric and hydrogen-powered cars, green road networks, and logistics parks.

We anticipate policies like interest equalisation and the removal of export levies and taxes in reaction to the volatility of global trade, which will improve the price competitiveness of Indian exports. All things considered, Budget 2025 has the ability to promote innovation, sustainability, and worldwide competitiveness, establishing India as a future centre for logistics.

-Managing Director Naresh Sharma, CCI Group

  1. Distriparks at KSH

In the transportation and logistics network, inland container depots (ICDs) are essential hubs that make it easier to move commodities between ports and inland areas. The Budget 2025 should include specific tax breaks or grants to encourage ICDs to update their facilities, increase storage and handling capacity to handle growing container volumes, ease seaport congestion, and guarantee more seamless inland operations in light of the ongoing growth of global trade and changing supply chain requirements.

It is anticipated that the government’s emphasis on the “Gati Shakti Program” will continue in the next budget, with particular attention given to the creation of “green corridors,” or designated routes where vehicles operate with the least environmental impact. This will help to optimise the movement of goods and lower logistics costs.

Policies are also anticipated to lower the cost of electric vehicles and improve the infrastructure for charging stations, creating a transportation system that uses less energy. ICDs may maintain their efficiency, sustainability, and competitiveness by encouraging the use of automation, digitisation, and artificial intelligence to have integrated data platforms and improved supply chain visibility. With more local manufacturing and exports, improved connectivity and operational efficiency at ICDs would support the government’s “Make in India” campaign and propel overall economic growth.

-KSH Distriparks’ Finance Head, Manoj Jhanwar

  1. Integrated Logistics KSH

With an emphasis on bringing logistics costs down to single-digit percentages, we anticipate that the 2025 Union Budget will be growth-oriented for the industry. A strong digital push and the encouragement of technology adoption, including AI, IoT, and other cutting-edge technologies, may accomplish this. We think that supply chains can only be optimised and costs reduced through tech-driven infrastructure, creative techniques, and effective procedures supported by strict standards.

However, an emphasis on appropriate worker training in conjunction with specific government incentives will be essential for the quick adoption of these technologies in the logistics industry. The implementation of single-window solutions will also be crucial to improve competitiveness and conform to international norms, guaranteeing a more seamless and effective regulatory environment.

Given the logistics sector’s high carbon emissions, the next budget must place a high premium on sustainable initiatives. To lessen the environmental impact of logistics operations, the government should provide incentives for the use of green technology like alternative fuels and electric cars. In line with international sustainability standards, the logistics industry may support India’s overall economic growth by cultivating a more tech-enabled and sustainable ecology.

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