Logistics Sector Seeks Western DFC Boost in Budget 2024-25 to Enhance Export Competitiveness

The Indian logistics industry is eagerly awaiting the Union Budget 2024-25, anticipating reforms that will transform the nation’s logistics landscape and drive economic growth. As a critical pillar of the economy, the logistics sector seeks consistency in policy, technology, and infrastructure to reduce costs from 14% of GDP to a more competitive 8-10%. The industry’s growth is crucial for enhancing connectivity, streamlining the movement of goods, and improving supply chain efficiency.

A key area of focus is the rapid completion of critical infrastructure projects, particularly the Western Dedicated Freight Corridor (DFC) connectivity to Nhava Sheva, along with its feeder routes. This project is vital for accelerating the nation’s progress and maintaining its competitive edge in the global market. The industry also expects the budget to address capital expenditure allocation in rail freight, roadways, ports, and digital infrastructure development.

Given the ongoing geopolitical challenges threatening global supply chains, the industry looks forward to export-friendly policy announcements that will encourage customer competitiveness in international markets and help Indian businesses expand their global footprint. Enhancing export container volumes from India is fundamental for sustained economic growth and greater participation in global trade, aligning with India’s ambition to emerge as a leading hub for logistics and supply chains.

The budget is also expected to provide increased support for SMEs, start-ups, and skill development initiatives within the logistics sector. This support is crucial for fostering innovation, creating job opportunities, and ensuring that the workforce is equipped with the necessary skills to meet the evolving demands of the industry.

Also Read:- Budget 2024: Logistics Experts Urge Tech Incentives for AI and IoT Integration

Efficient logistics are fundamental to the country’s economic growth, providing a backbone for ensuring seamless connectivity across various industries. The reduction in logistics costs and taxes has already begun to bring down the prices of most goods and services, a trend that will likely continue with further improvements in the sector. The biggest beneficiaries of these anticipated reforms are expected to be the consumers.

As the nation looks ahead to the Union Budget 2024, there is a collective sense of anticipation and readiness to work towards the development of the logistics sector. Industry players, government bodies, and stakeholders across the supply chain are aligning their efforts to create a more robust, efficient, and globally competitive logistics ecosystem. The upcoming budget represents an opportunity to address key challenges, invest in critical infrastructure like Western DFC connectivity, and implement policies that will propel India’s logistics sector to new heights.

The industry’s growth is critical for India’s economic ascension on the world stage. With the countdown to the budget underway, all eyes are on the government to see how it will support and accelerate the growth of this vital sector. The logistics industry is poised to play a pivotal role in driving India’s economic growth, and the upcoming budget is expected to provide the necessary impetus to achieve this goal.

Reference By:- https://www.moneycontrol.com/budget/