Budget 2024: Experts in the logistics sector experts expect that tax burdens should be reduced on fuel and operations as it would further support the financial sustainability of courier companies, fostering a conducive environment for cost-effective operations.
Budget 2024: As just a week is left for the Union Budget 2024 to be presented by Union Finance Minister Nirmala Sitharaman, the logistics sector in the country has big expectations from the Centre. Experts in the logistics industry expect the Centre to invest in improved road networks, strategically located delivery hubs, and advanced technology solutions for optimal route planning. Some other experts expect reduced tax burdens on fuel and operations as it would further support the financial sustainability of courier companies, fostering a conducive environment for cost-effective operations.
Speaking to India.com, Raju Sinha, Chief Business Officer at Fship Logistics, said investments in improved road networks, strategically located delivery hubs, and advanced technology solutions for optimal route planning are essential. He said anticipating reduced tax burdens, especially on fuel and operations, would further support the financial sustainability of courier companies, fostering a conducive environment for cost-effective operations.
“India’s logistics sector is at a crossroads. To unleash its full potential and drive economic growth, the upcoming budget must be a catalyst for transformation. We need bold investments in infrastructure, not just piecemeal allocations. A dedicated infrastructure fund targeting roads, railways, and ports would dramatically reduce transit times and create a connected network. But infrastructure alone isn’t enough. The government must incentivize tech adoption like never before. Tax breaks and subsidies for IoT, AI, and blockchain integration are crucial to streamline operations, enhance transparency, and propel India to the forefront of digital logistics,” he said.
Ajay Kumar Tiwari, Founder & CEO, Eagabriz Shipping Pvt Ltd said that the logistics companies are looking at strengthening economic zones, expediting process and working more towards connectivity as it will help reduce cost and time and increase productivity, economy.
“Although enough has been done by the Centre on these fronts like the golden route, Delhi Mumbai expressway, much more is needed which we being in logistics are expecting to be announced in this budget,” she said.
Rajesh Mehta, Executive Director of, Liladhar Pasoo Group, said, “Innovation in express transportation is needed to support e-commerce volume and coastal and waterways development should continue. He said focus should be given on dedicated road corridors to promote industrial belt linkages and faster movement of goods from produce to markets.
“We are still away from calling India logistically seamlessly integrated. The same is to be fastened across different govt departments and stakeholders.
Varun Gada, Director of LP Logiscience- A Liladhar Pasoo Company (Contract Logistics & Warehousing Sector), said focus should be given to reducing steel prices, incentivizing standardization, aid or subsidy for skill development and training, access to capital for investment for Grade A warehousing and digital adoption.
He added that alleviating the impact of high competition, costs, and competitive taxes to remain globally relevant, which is crucial for the sector’s smart and digitally equipped development.