Budget to enable creation of efficient logistics ecosystem
Hyderabad: Budget 2022’s emphasis on logistics, specifically for the Gati Shakti Plan, reiterates how the logistics sector is integral to the economic and trading activities of India. In India, road transportation dominates the logistics sector, with a majority share of 60 per cent, followed by Railways, which has a 30 per cent contribution. Neeraj Bansal, […]
Hyderabad: Budget 2022’s emphasis on logistics, specifically for the Gati Shakti Plan, reiterates how the logistics sector is integral to the economic and trading activities of India. In India, road transportation dominates the logistics sector, with a majority share of 60 per cent, followed by Railways, which has a 30 per cent contribution.
Neeraj Bansal, COO, India Global and National Leader- Supply Chain Realignment, KPMG in India, said, “Given this context, the Budget’s announcements under the National Gati Shakti plan are a welcome move for the sector. The Gati Shakti Masterplan for Expressways will expand roadways by 25,000 kilometres, connecting remote areas of the country with manufacturing hubs. The 100 cargo terminals to be developed under this programme will ensure a more efficient logistics connectivity.”
The concept of “one station, one project” will help in popularising local businesses and supply chains, with the Railways to develop projects specifically for the MSME sector. The announcement of contracts to be awarded for multimodal logistics parks also puts into focus the government’s efforts in ensuring logistics efficiency, Bansal added.
Shyam Arumugam, MD, Industrial and Logistics Services, Colliers India, said, “The budget speech places thrust on clean technology in public transport, with plans to develop special mobility zones for electric vehicles and the introduction of a new battery swapping policy. This is a welcome move to facilitate further growth of EVs, as India moves towards its sustainability goals.
The PM Gati Shakti plan and the corresponding announcement of additional 25,000 km of roads will spur growth in the mobility sector. Government’s initiative on electric vehicles and the announcement on a battery swapping policy is a major boost to the nascent EV sector and will boost customer confidence in EVs, according to Parag Satpute, Managing Director, Bridgestone India.
Shishir Baijal, CMD, Knight Frank India, added, “Creation of unified logistics platform and developments of 100 new cargo terminals in the next three years are significant steps in improving the supply chain eco system in the country.”
Tanmay Kumar, CFO, Shiprocket, said, the budget has focused on the development of infra projects which will boost the logistics system in India and will help to become enablers of an effective logistic system.
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