Union Budget 2025 | Continued push for infra development needed for logistics industry, says Ravi Jakhar, Chief Strategy Officer of Allcargo Group

'For the logistics industry, the continued push by the government for infrastructure development through initiatives like National Infrastructure Pipeline (NIP), PM GatiShakti National Master Plan, etc. will help the industry make significant progress in achieving efficiency,' he said.

The Union Budget for the upcoming financial year is slated to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. It has been anticipated that the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption, as per several reports.

Speaking on behalf of the logistics sector, Ravi Jakhar the Chief Strategy Officer of Allcargo Group underlined his sector's expectation from the Union Budget 2025.

Ravi Jakhar said, “The logistics industry is poised to play an enabling role in driving economic growth on the back of policy support, technology integration and continued infrastructure development. Hence, in the Union Budget 2025-26, we expect the government to propose robust capex in developing both physical and digital infrastructures to build the pathway for India to become a $5 trillion economy by FY27-28."

Ravi highlights the need for a push towards better and more infrastructure to help increase the efficiency of the logistics industry.

"For the logistics industry, the continued push by the government for infrastructure development through initiatives like National Infrastructure Pipeline (NIP), PM GatiShakti National Master Plan, etc. will help the industry make significant progress in achieving efficiency. A robust road, rail, air and waterway networks, growing network of multi-modal logistics parks, developing renewable energy infrastructure and strong digital infrastructure will further expand economic activities geographically, drive sustainability and enhance the service delivery capacity and capabilities for the logistics industry. A sustained capex push will also attract private investment in infrastructure development. However, considering long gestation, the government has to take the lead in logistics infrastructure capex to boost efficiency in supply chains," added Ravi.

As far as e-commerce and quick-commerce is concerned Ravi opined, "In addition, earlier E-commerce and now quick commerce's rapid growth has underscored the necessity for agile and accelerated distribution capabilities. Therefore, the budget should propose fiscal measures to facilitate adoption of new-age technologies such as AI, automation, IoT so that the logistics industry breaks new grounds in efficiency as well as capacity utilisation and deployment.”