Union Budget 2023 - Aims to Promote Logistics Ecosystem in India

Union Budget 2023 – Aims to Promote Logistics Ecosystem in India

As the Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, presented the Union Budget 2023-2024 in Parliament on 1st February, a boost for the logistics in the country is expected along with other development goals. She said, “33% higher capital outlay of Rs. 10 lakh crores will fast track implementation of high-multiplier government programmes such as Gati Shakti and others.”

Prime Minister Narendra Modi commented, “Aspirational India of today wants modern infrastructure in every field like road, rail, metro, port, and waterways. Compared to 2014, investment in infrastructure has increased by more than 400 percent. The unprecedented investment of ten lakh crores on infrastructure will give new energy and speed to India’s development.”

The budget aims to promote the logistics ecosystem across the country and the industry has lots of hope and expectations, specially due to the National Logistics Policy along with several existing schemes like Bharatmala, Sagarmala, PM Gati Shakti Plan.

The industry veteran Vipin Vohra, Chairman, Continental Carriers Pvt Ltd, believes that this was the first normal budget after the Covid pandemic and amid a global slowdown with 7% growth rate along with Rs 1.97 lakh per annum per capita income.

He added that Finance Minister outlined seven priorities ‘Sapt Rishis’ for the ‘first Budget in Amrit Kaal’

  • Inclusive development
  • Reaching the last mile
  • Infra & investment
  • Unleashing the potential
  • Green growth
  • Youth power
  • Financial sector

Another opinion comes from Vineet Malhotra, Co-Founder and Director, Kale Logistics Solutions, who believes that the Union budget 2023 lays strong impetus on existing schemes and aims to promote the logistics ecosystem across India. He said, “The impetus given to inclusive development and technology driven initiatives is a significant step. Development of cluster-based value chain approach, and market linkages will boost seamless export of Agricultural produces. Moreover, the infrastructural push to develop 50 more Airports, Heliports, and Water Drones across the country will boost the export of authentic products from remote locations. One hundred critical transport infrastructure projects for last and first mile connectivity for ports, coal, steel, fertilizer, and food grain sectors taken up on priority with an investment of INR 75,000 crore, including INR 15,000 crore from private sources is a massive step towards developing the infrastructural capabilities with agility. The government promoting coastal shipping as an energy-efficient mode of transport is welcome as the government is promoting different modes of transport. Overall, these activities will complement the existing schemes of Bharatmala, Sagarmala, PM GatiShakti Plan, and most importantly National Logistics Policy.”

Manav Sachdeva, Director, SKY Logitrans Private Limited, also gave his insights on this topic. He said, “In a nutshell, the 7 priorities of the Budget that include development, reaching the last mile, infrastructure and investment, unleashing the potential of India, Green growth, banking on youth power and bolstering the finance sector, will take the country further on the growth trajectory as the budget talks about the vision for New India, the country’s prosperity and aim of serving 130 crore Indians.”

“It’s a well-balanced Budget that will create strong and stable macro-economic environment for growth and job creation. The Budget is likely to enhance business, tax payer sentiment and consolidate India’s growth prospects during this fiscal year. It has every potential to bring out a broad-based revival in the Indian economy by providing opportunities for citizens with focus on Youth,” opined Vipin Vohra from Continental Carriers, adding, “Budget 2023 has laid emphasis on reviving-of 50 additional Airports under Regional connectivity Scheme (RCS), which it is hoped will ease movement of Domestic cargo also along the passengers and international cargo through nearest international Airport.”
The Minister also announced the launch of Pradhan Mantri Kaushal Vikas Yojana 4.0 to skill lakhs of youth within the next three years. The scheme will cover new-age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. She also proposed to set up 30 Skill India International Centres across different States to skill the youth for international opportunities.