Venu Kondur, Co-Founder and CEO, Lobb.
Credit: Lobb
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The logistics sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.
Here's what Venu Kondur, Co-Founder and CEO, Lobb has to say--
As we approach the 2025 Union Budget, we expect the government to prioritize substantial investments in infrastructure, multimodal logistics hubs, and digital platforms to address the evolving needs of the logistics ecosystem.
These efforts align with the Amrit Kaal plan, which focuses on building a future-ready economy and boosting India’s global competitiveness. Additionally, optimizing logistics costs will play an important role in supporting India’s aspiration to become a $10 trillion economy.
Initiatives like smart logistics parks, IoT-enabled transport systems, and advanced port and highway technologies will significantly enhance operational efficiency, reduce costs, and minimize the sector’s carbon footprint.
Furthermore, we suggest the government to provide capital investment relief for small truck owners by removing the GST. Smaller fleet owners often face challenges accessing financing and capital, and the removal of GST would ease their capital expenditure.
This would also make it more affordable to expand or maintain their fleets, ultimately fostering more efficient competition in the market.
Additionally, the government should also consider introducing fiscal incentives for startups innovating in AI-powered route optimization, multimodal connectivity, and green logistics.
We also expect tax rebates for companies adopting EVs and LNG trucks, which will drive sustainability in the sector. Furthermore, reconsidering TDS exemptions is essential for this low-margin sector (3–4 per cent) facing long payment cycles, while a more transparent and faceless GST process will encourage compliance.
Finally, we anticipate increased investments in dedicated freight corridors, automation, and real-time analytics to reduce transit times and operational costs, ensuring India remains a global leader in logistics.
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.