Union Budget 2023: What leaders from logistic industry expect

Logistic Industry

During the pandemic, logistics firms played an important role in the value chain, both within and beyond international boundaries, whether transporting vital supplies or assisting SMEs and MSMEs in adapting their business operations. The sector has contributed to the worldwide movement of products.

Logistics and manufacturing are inextricably linked and have a large impact on one another. Strategically managing raw material procurement, freight transport and material storage, finished product production and dispatch, maintaining production and information flows into and throughout the organisation, planning and executing standard logistics procedures to meet the needs of manufacturing operations as well as consumer demands.

Zaiba Sarang, Co-founder, iThink LogisticsZaiba Sarang, Co-founder, iThink Logistics, says, “Logistics is one of the most competent industries in the world, to the point where it is regarded as the foundation upon which all other businesses are built. As a result, when discussing budget allocation, we must recognize how critical it is to not only invest in this sector but also to ensure that our investments are directed toward areas that truly matter. Logistics is one of the unorganized industries, so we should anticipate investments in activities that will make it more organised. PM Gati Shakti, for example, has focused on seamless multimodal connectivity to enable smooth operations. We can anticipate the implementation of the National Logistics Policy, which will reduce the cost of GDP from 14 per cent to single digits. As we all know, logistics is one of the world’s largest carbon-emitting sectors; there has been discussion about investing in making this sector carbon-neutral by using less carbon-emitting fuels, electric scooters, and other similar technologies. On top of that, we can expect Rs 2 lakh crore in investments in port infrastructure to alleviate logistics inefficiencies. Overall, we can predict that 2023 will be the year when the logistics industry reaches its full potential.”

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The upcoming Union Budget 2023 is likely to anticipate logistics investments. We can also expect the government to implement the National Logistics Policy, which has the potential to lower GDP costs from 14% to single digits. We can expect 2023 to be fully potential for the logistics industry.

Malay ShankarMalay Shankar, CEO, ProConnect Supply Chain Solutions Limited, stated, “In the post-pandemic reality, the logistics sector has been flourishing, contributing immensely to the national economic growth. Since the Indian government focuses on accelerating economic development, strategic announcements and changes for the Supply Chain and Logistics Industry will have a wide-spreading impact. Here are some of the sector’s expectations from the government to fast-track the economy’s productivity.

Firstly, the New Labour Code directly impacts the blue collar workers who are the backbone of the logistics and supply chain industry. Bringing in more straightforward means of enforcing it, while ensuring social security and economic benefit to the blue collar workers will fetch long-lasting results. Getting rid of ambiguity and having simpler ways of implementation will help industrial workers. Coupled with the supportive Digital India policies, the government can thrust on closing the digital gap that persists in the industry. With lucrative sops for players bridging this gap by skill training to their workforce, the government can boost leaders in the space to catalyse the digital evolution of the sector.
On the other hand, we really hope the government will strengthen the foundation of National Logistics Policy (NLP) and implement it to ease bottlenecks and reduce costs. Along with that, an improved road network will decongest roads, facilitate seamless transportation of goods and get better land value for the warehousing hubs. The sector is keenly looking at adopting greener practices. Offering tax benefits and incentives to the warehousing industry for deploying solar-enabled solutions and other green practices will go a long way in reducing the carbon footprint of the sector as a whole.”

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