Budget 2021 | The revival of logistics sector

Budget 2021 | Expecting the government's support in reviving the logistics sector, says CFO of Blue Dart

Investing in better road infrastructure will fasten the movement of goods

 Aneel Gambhir. Credit: Blue Dart.

By Aneel Gambhir,

While the onset of the coronavirus pandemic affected the logistics sector, the sector has stood the test of time by supporting the movement of essentials and non-essentials when the nation was under lockdown.

We expect the government’s full support to revive the sector and in order to do so, the logistics cost should be reduced from the present 14 per cent of GDP to less than 10 per cent since high logistics cost is impacting the competitiveness of domestic goods in the international market.

Investing in better road infrastructure will fasten the movement of goods, help in reducing the costs and improve turnaround time for vehicles. Improvement of air infrastructure and connectivity will help the logistics industry to boost this sector.

 Electric vehicles have the potential to aid in last-mile delivery while also adding to environmental protection. The Government should incentivize the use of electrical vehicles and focus on strengthening the infrastructure for enabling easy manufacturing and usage of EVs and EV-related elements.

Similarly, Government could consider rolling back additional taxes levied on Petrol and diesel prices. The additional taxes levied during the pandemic are hurting the cost of transportation. It is also leading to high inflation.

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(The author is the CFO of Blue Dart)