Post Budget Reaction From Logistics Sector

Shailesh Kumar,

Mr. Shailesh Kumar, Founder of CABT Logistics.
“The budget has taken into account the need for infrastructure development and increased connectivity in India. Investments in infrastructure in productive capacity have a large impact on growth and employment. The budget takes the lead in ramping up the virtuous cycle of investment and job creation. The Capital investment outlay is being increased to 10 lakh crores which would be 3.3% of GDP. One of the major highlights is the extended support to state governments for capital investment. The 50 years interest-free loan to the state governments will be extended for 1 more year to spur investment in infrastructure and incentivize them for complementary policies and actions with a significantly enhanced outlay of 1.3 lakh crore. The newly established infrastructure finance secretariat will assist all stakeholders in investment in railways, roads, urban infrastructure, etc which are predominantly dependent on public resources. This will ensure increased intra-city connectivity, thus paving the way for better logistics. A capital outlay of 2.40 lakh crores has been provided for the railways which will ultimately aid in connectivity even to remote areas. 100 critical transport infrastructure project for last and first-mile connectivity for food grains sectors, steel, fertilizer, etc has been identified. 50 additional airports, heliports, and advanced landing grounds will be revived for improving regional air connectivity. So this investment towards transit-oriented development will help the logistics sector as well.”

Mr. Vishal Jain, Co-Founder of Roadcast Technology funded by Jubilant Foodworks.

Vishal Jain

“We are really happy with the budget because it takes into consideration sustainable and green growth. Especially the pro-EV outlook which will ensure that there are more electric vehicles on road. The reduction of customs duty from 21% to 13% on Lithium Batteries and an extension of the subsidies on EV batteries for one more year, will incentivize propel to invest in EVs. This in turn will help logistics and vehicle connectivity grow. Besides this, incentives for infrastructure development and inter-city connectivity with budget allocation for railways, 50 additional airports, increased roadway connectivity, and enhanced urban planning will towards transit-oriented development is key for the growth of logistics and we look forward to these beneficial schemes.”