Indian logistics lauds union budget for focusing on infra, EoDB, MSME
The logistics industry leaders of India lauded the Union Budget 2023-24 for focusing on infra development, ease of doing business measures and revamping the credit guarantee scheme for MSMEs.
Vineet Agarwal, MD, Transport Corporation of India: “Along with the steep investment increment in digitization and automation to develop smart warehousing, the new projects will strengthen the much-needed multimodal connectivity.”
Zaiba Sarang, co-founder, iThink Logistics: “We are extremely elated at the announcement of these provisions. They will help solve the current connectivity issues facing the industry while building a more sustainable future for logistics.”
Rampraveen Swaminathan, CEO, Mahindra Logistics: “The announcement of setting up Urban Investment development fund (UIDF) for Tier 2 and Tier 3 cities will provide a much-needed boost for smoother and faster logistics transportation and will further ensure greater connectivity in tier-2 and tier-3 cities."
Nikhil Agarwal, president- CJ Darcl Logistics: “The newly announced projects will help the country to ensure energy and food security. These are critical for India as it targets to become the third largest economy in the world in the next 6-8 years.”
The finance minister also noted that the new 100 projects will be taken up on priority with an investment of ₹75,000 crore, including ₹15,000 crore from private sources.
“This is an opportunity for Indian enterprises to participate in India’s growth story,” said, Nitin O Mahipal. CEO & MD of Mega Pack and Carry, while talking about the government’s plan to raise₹15,000 crore out of the total amount from the private sector.
Rizwan Soomar, DP World: “We are confident that the budget will attract private investment for capital expenditure, which will spur economic growth and position India as one of the fastest-growing nations in the world.”
The budget also announced fifty additional airports, heliports, water aerodromes and advanced landing grounds.
“This will establish comprehensive air connectivity. This will also enhance the fiscal output while lowering the logistical costs and timeframes,” said, Nisschal Jaain, co-founder and CEO, Shypmax.
“The push is commendable and will strengthen the sector, and are in alignment with the goals of the National Logistics Policy (NLP),” opines, Swarup Bose, founder & CEO of Celcius Logistics.
Varun Gada, director of the LogiScience logistic division of Liladhar Pasoo. “For players like us, who are looking at growth into tier 3 and 4 regions, this infrastructure push will be instrumental in creating cost-effective supply chains as well as drive overall market growth."
Infrastructure and investment was one of the seven priorities listed by the budget and the capital investment outlay increased steeply for the third year in a row by 33 percent to ₹10 lakh crore, which would be 3.3 percent of GDP.
Dr A Sakthivel, president, FIEO: “These initiatives will have a spin-off effect on the economy and employment.”
“The drive to invest in and expand infrastructure is also intended to have a multiplier impact on job creation, resulting in increased employment potential and business opportunities in India's supply chain and logistics industries,” says, Lalit Das, founder 3SC Solutions.
Md Imthiaz, Raaho appreciates the government's efforts to simplify taxes, reduce compliance and create the Infrastructure Finance Secretariat. “These measures will encourage private investment in important areas like railways and roads, and have a positive impact on the economy and job creation.”
Finance Minister also announced a capital outlay of ₹2.40 lakh crore for the Railways, which is about 9 times the outlay made in 2013- 14.
Yogesh Dhingra Smartr Logistics: “Rail, being one of the most efficient modes of transportation, will help in cost reduction as well as reducing greenhouse emissions by decreasing reliance on the road and air connectivity only."
"This expenditure is the highest ever, and the remaining works of WDFC will be completed in fiscal 2024. It will boost the movement of goods from roads to railways,” says, Prem Kishan Gupta, Gateway Distriparks.
“I believe that with a capital outlay of ₹2.40 lakh crore for the Railway, there will be a dynamic change in strengthening the infrastructure of the entire railway system,” said, Vivek Lohia, managing director at Jupiter Wagons Group.
For enhancing the ease of doing business, the budget has reduced 39,000+ compliances and decriminalised 3,400+ legal provisions.
Photo by Rodeo Project Management Software on Unsplash
Anil G Verma, Godrej & Boyce: “Together with the initiatives to reduce the compliance burden and de-criminalise several regulatory provisions, it will improve the ease of doing business in India and attract fresh investments.”
“We welcome the provisions for ease of doing business which will help lay the foundation for big private investments in infrastructure development,” said, Rajiv Agarwal, Essar Ports.
Finance Minister announced the revamped credit guarantee scheme for MSMEs, proposed in the previous budget, will take effect from April 1, 2023, through the infusion of ₹9000 crore in the corpus.
Amit Maheshwari, Softlink Global: “The logistics sector is largely driven by MSMEs and the government's announcements on less stringent contract execution and credit guarantee schemes for MSMEs will help businesses affected by the pandemic."
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