Power moves outlined in Union Budget set to fuel logistics sector’s growth appetite

The logistics and supply chain industry in India is expected to grow at a CAGR of 10.5% from 2020 to 2025.

This year’s budget has laid the foundation for India’s continued macroeconomic growth and managed to do some heavy lifting by outlining a clear transport focussed development, funneling investments in infrastructure, and promoting green growth by transitioning to cleaner energy sources first.

The budget follows the government's vision of ‘Atmanirbhar Bharat’ and of India becoming a $5 trillion economy by 2025 by focusing on extensive connectivity, reducing logistics costs and with an emphasis on the greener and sustainable practices in the warehousing and supply chain networks.

The overall infrastructure spend is up by 33% to 10 Lakh crores, which forms 3.3% of GDP in this year.

“The proposal for a Rs 35,000 crore capital investment outlay to achieve energy transition and net zero goal will eventually help the logistics and supply chain industry reduce environmental impact and adopt green mobility” - Amitabh Singh, Stellar Value Chain Solutions

“The significant capital outlay dedicated to increasing clean energy’s role in India’s energy mix, together with the removal of customs duties on capital goods critical to the production of lithium-ion batteries, significantly contributes to decarbonisation.” - Coen van der Maarel, Kuehne+Nagel

“The focus on agriculture and food co-operatives with decentralised storage facilities, green operations, and energy transition to hydrogen power, are further aspects that will positively push the warehousing sector to adopt sustainable practices.” - Varun Gada, LP Logiscience

“The DigiLocker service will make it easier to securely store and share documents online, increasing the effectiveness of the commercial ecosystem.” - Lalit Das, 3SC Solutions

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