Port Wings News Network:
Mr. Rajiv Agarwal, Operating Partner (Infrastructure), Essar and Managing Director, Essar Ports
“As global supply chains reorient in the wake of global events, India is expected to play a huge role as it charts its way to USD 5 Trillion economy and more. Infrastructure and Logistics sector is expected to play a pivotal role for Manufacturing & Services. They need to be supplemented with enabling policy frameworks and ensuring availability of low cost borrowing for long gestation projects. The Budget should also look at rationalization of taxes which can not only boost savings & domestic consumption but also investment in new Projects as private sector is expected to play a key role in various projects identified by our Government to make an “AtmaNirbhar Bharat”.
Mr. Kishan Tiwari, Co-Founder and CEO, TSAW Drones
As a drone technology and drone development company a more inclusive environment needs to be created for prototyping, testing and making the product market ready. Since drones share similarities with the aerospace domain, testbeds are expensive and limited, and prototyping is costly and limited, and prototyping is costly affair. Government support in this field would give a great boost to the industry. As a drone logistics provider service, linked incentives will be a boost. And more clarity on beyond visual line of sight operation would promote investment in the industry.
As a drone manufacturer, I believe PLI schemes should have a plan to indigenous technology. The incentives post a particular tenure should be given only if the manufacturer has indigenized the production to a particular level.
Imthiaz, CEO and Co-Founder, Raaho
Contrary to the state of the global economy, India’s performance in trade and commerce has been consistent, buoyed by a supportive policy environment. The logistics industry is one of the largest, contributing 14.4% to the country’s GDP. The approaching Budget 2023 is anticipated to cover several key areas of development for the logistics industry in order to boost growth and achieve the desired 10% cost share per GDP target set by the Union Government. State-led initiatives for development of logistics infrastructure, such as multi-modal logistics parks, with public-private partnerships working together is another urgent requirement, along with reforms in public procurement policies. The government should also consider providing capital subsidies for the construction of grad-A warehouses in smaller towns. There is an urgent need for the government to make provisions for and promote digitisation within the logistics industry, only 2% of which is digital. Promotion of environmentally responsible practices via restructuring tax and subsidies can also be beneficial and should find a place in the upcoming Budget.
Mr. Soham Chokshi – CEO and Co-founder, Shipsy
“National Logistics Policy has been a landmark development in mobilizing the power of digitization to improve the state of logistics in the country. The budget will most likely be aligned to augment it through concerted efforts. This entails more investments in connectivity projects and building logistics infrastructure in various economic zones, especially under the PPP model, to expedite the execution of these. In addition, India’s last-mile emissions per delivery being higher than the global average is an area that needs immediate attention. Reducing miles travelled per package and ensuring that the distance is covered through eco-friendly modes can help lower carbon emissions. So generous incentives for the deployment of EVs in deliveries backed with stringent policies can prove critical to addressing climate change concerns.”
Karan Shaha, CEO and Co-founder, Vahak.
“The sector has made enormous strides under the National Logistics Policy’s CLAP, particularly with the recent creation of a network of Logistics Parks that have been mapped using the PM GatiShakti NMP. This will further bring focus on enhancing visibility, improving logistics efficiency, and ensuring optimum utilisation and connectivity. There is a critical need to map these with the requirements of commercial vehicle drivers at the core.
Today, nearly 56% of dedicated freight corridors have been completed. We are hoping that the Union Budget will incentivise development to bring 100% closure of these freight corridors. We recommend these projects be given top priority to support a seamless and effective logistics model. We are also hopeful that this Union Budget will look into incentivisation of R&D for the latest alternative fuels – battery-electric, compressed natural gas (CNG), flex fuel, hydrogen fuel cell, fuel efficiency, among others, with relevant charging infra – and technologies like AI, ML, Big Data, GPS, safe driving. Targeted incentives can spur demand for commercial alternative fuel technologies and their adoption, as well as favorable financing for trucker communities, will encourage them to buy green commercial vehicles.
We expect this budget to address issues with systemic changes that ensure reliable employment, and fair compensation with minimum wages in the range of Rs. 25,000 per month through the Motor Vehicle Act, and linking of license renewal with social security schemes such as ESI/ PF, life and medical insurance. Through collective efforts, the industry and the government can harmonise demand and supply and drive market scale in the upcoming year.”
Mr. Mahendra Shah, Chairman and Group Managing Director, V-Trans (India) Ltd.
“In the impending budget, The finance minister can address the challenges faced by the logistics sector in several ways and provide a steadiness between the economic growth priorities and inflation concerns, in an all-encompassing manner. Investments in infrastructure and technology can be given some motivation by offering tax benefits, it will on hand make the operations more effective and bring down the cost, on the other, it will also create employment opportunities. Also, to motivate the logistics players, the government can enhance or introduce rewards for building green infrastructure and practicing sustainable initiative”. Further he added, “The momentum of growth that our country has come to a way post the global pandemic cannot be undermined, the strengthening of the digital ecosystem with various initiatives under NLP, for faster communication and work, enhanced visibility, and transparency is very promising. To catalyze the master plan announced in the previous financial budget, NLP was much awaited by the industry and heard quite applause. We expect this budget to focus on lowering the costs of the logistics industry, especially by implementing the NLP that was launched in 2022, and look forward to seeing some tangible benefits to the industry being passed.”
Mr. Yash Jain, Co-founder, and CEO, NimbusPost.
The Indian logistics industry needs shorter delivery timelines which can be achieved with the use of advanced technology. Plus, the technology should be available at economic rates so even small-sized brands can leverage the latest tech for a superior logistics experience.
Delivering orders fastest from one corner of the country to another at the lowest cost is the biggest challenge for the logistics industry at the moment. For example, if a seller needs to deliver an order from Chennai to Assam, it should ideally be delivered in one day and at a minimal cost.
Other Major expectations:
The industry is in dire need of world-class infrastructure, electric vehicles, IT implementation, decongestion of roads, road/port capacity expansion, lower fuel cost, more logistics parks, improved warehousing and automation, and transparency in govt policies.