Rizwan Soomar, Chief Executive Officer & Managing Director, DP World Middle East North Africa and India Subcontinent, says, “The Union Budget will significantly enhance ease of doing business, workforce skilling and manufacturing competitiveness with its continued focus on development of maritime infrastructure, domestic air connectivity, development of dedicated rail freight corridors (DFCs) and large-scale port modernisation. The government’s commitment to inland water transport through the tonnage tax scheme will provide a more sustainable and cost-effective way of cargo movement. The Bharat Trade Net aims at simplifying trade documentation and will help optimise supply chains through data-driven decision-making. The INR 25,000 crore Maritime Development Fund will enhance financial stability and competitiveness for Indigenous shipbuilding and other infrastructure projects encouraging private investments. The extension of Basic Customs Duty (BCD) exemption for raw materials in shipbuilding and shipbreaking is a significant step, reducing dependency on imports.”  

Saudia Cargo has reported a robust growth of 13 per cent in cargo volumes in 2024 as compared to the corresponding period in 2023. Also, the airline recorded a 27 per cent increase in growth of total transported weight. Saudia Cargo carried 5,77,870 tonnes of air cargo in 2024, conducting a total number of 1,93,599 flights. The growth was mainly driven by e-commerce volumes, which surged 23 per cent to 64,107 tonnes. The airline also transported 13,740 tonnes of locally produced goods, resulting in a 14 per cent YoY growth. “Our 2024 results reflect our steadfast dedication to delivering innovative and agile cargo solutions that drive global trade and adapt to market dynamics. We remain focused on growth, strengthening partnerships, and providing advanced solutions to users. By prioritising sustainability and operational excellence, we are steadily progressing toward our goal of ranking among the world’s top 10 air cargo carriers by 2030,” Eng. Loay Mashabi, CEO and Managing Director, Saudia Cargo, said.  

Balfour Manuel, Managing Director, Blue Dart, says “As India marches toward becoming a USD 5 trillion economy, the logistics sector stands at the forefront of enabling this transformation. The Union Budget 2025-26 presents an opportunity to enhance the sector’s contribution by prioritizing investments in freight train speeds, expanding Dedicated Freight Corridors, and improving multimodal infrastructure for industries such as mining, steel, and cement. With the National Logistics Policy and PM GatiShakti driving progress, we look forward to robust capital expenditure on physical and digital infrastructure, along with technology integration and sustainability measures, to strengthen logistics efficiency and elevate India’s industrial competitiveness on a global scale.”  

The industrial & logistics sector in India registered a growth of 47 per cent YoY growth during the October to December period (Q4 2024), as per the CBRE report. The growth was primarily pushed by strong demand from 3PL and FMCG segments. The leasing in the sector touched 39.5 million sq.ft mark in CY2024 across the top eight cities, the report added. The growth was majorly supported by Delhi-NCR, Bengaluru, and Kolkata, with an aggregate contribution of 60 per cent in the total leasing activity during the year. The report further stated that the majority of the space leased was led by small-sized transactions (below 50,000 sq.ft), a total of 43 per cent of the total leasing volume. The medium-sized transactions (50,000-1,00,000 sq.ft) and large-sized transactions (more than 1,00,000 sq.ft) each contributed 28 per cent to the total absorption.  

The International Air Transport Association (IATA), Asia-Pacific airlines saw 14.5 per cent year-on-year demand growth for air cargo in 2024, the strongest among all the regions. The capacity increased by 11.3 per cent YoY, whereas demand growth for the month of December YoY surged 8.4 per cent. Asia-Pacific airlines were followed by Middle Eastern carriers, which saw an increase of 11.2 per cent in demand growth for air cargo in 2024. The capacity increased by 7.8 per cent year-on-year, during the same period. “Air cargo was the standout performer in 2024 with airlines moving more air cargo than ever before. Importantly, it was a year of profitable growth. Demand, up 11.3 per cent year-on-year, was boosted by particularly strong e-commerce and various ocean shipping restrictions,” Willie Walsh, Director General, IATA, said.

Amar More, Director & Co-Founder of Kale Logistics Solutions, said, “Modified UDAAN scheme is significant as it continues to connect several Indian cities to major urban clusters and the world. Bihar being a large state, developing Greenfield and Brownfield airports will promote growth of the region and make way for cargo movement of perishables from the state to the urban hubs and make way for exports. Upgradation of the air cargo industry for perishables and making cargo screening user-friendly will make air cargo movement a cake walk for all. Overall, this budget is streamlining the growth prospects set for a Viksit Bharat.”

Amit Bhargava, Partner and National Head, Mining & Metals, KPMG in India, said “Union Budget 2025 has recognized and empowered the aspirations of the metals and mining sector to further strengthen its global positioning, in terms of scale of production, greener product offerings and increased innovation. The budget supports specifically in realizing mining potential, availability of digital capabilities, increasing value chain competitiveness, enabling energy transition and decarbonization, encouraging critical minerals related circularity and logistics efficiency.” Some of the key takeaways are: • Minor minerals mining and critical minerals recovery from tailings is a step to realize the potential of mining and availability of critical minerals (including exemption/ reduction of BCD on key critical minerals) • Empowering MSMEs to enhance exports, access to technology and funding would be a step for improving the competitiveness of sector’s downstream value chain • Clean technology focus that helps establishing domestic solar/ EV related manufacturing would be critical in further expediting the energy transition of the sector • Centre of Excellence for AI and emphasis on Industry 4.0 would be instrumental in ensuring availability of key digital capabilities, so critically required by the sector • India post infrastructure to be leveraged in bringing in greater logistics efficiencies

C K Govil, President, ACAAI says, “The Union Budget 2025-26 has been designed with a strategic focus on balancing economic growth and fiscal responsibility, ensuring that development reaches various sectors while maintaining prudent financial discipline. Here’s a breakdown of its key aspects: Manufacturing and Industrial Development, Make in India’ Push: National Manufacturing Mission to promote domestic production. Support for MSMEs: Expanded credit guarantee schemes to help small businesses grow, Ease of Doing Business: Reduction in compliance burdens and faster approvals for industries. Infrastructure and Urban Development •Interest-Free Loans to States: ₹1.5 trillion allocated for state infrastructure projects, boosting regional development. •Maritime Development Fund: Investments in port infrastructure to enhance trade efficiency. •Urban Challenge Fund: Encouraging smart city projects and innovative urban planning. Digital & Technological Advancement •AI and Innovation Fund: Support for AI startups, research, and skill development. •Expansion of Digital Public Infrastructure: Strengthening India’s digital economy, fintech, and cybersecurity measures. 2. Fiscal Responsibility and Stability •Targeted Fiscal Deficit Reduction: The government aims to bring down the fiscal deficit to 4.5% of GDP, ensuring financial stability. •Sustainable Borrowing: Maintaining fiscal discipline while funding infrastructure and social programs. •Rationalizing Subsidies: Efficient targeting of subsidies to avoid unnecessary fiscal burdens. 3. Support for the Middle Class and Consumers •Income Tax Reforms: Likely reductions or restructuring to boost disposable income and spending. •Affordable Housing Benefits: Strengthened PMAY (Pradhan Mantri Awas Yojana) for housing accessibility. •Consumer Spending Push: Incentives for sectors like real estate, automobiles, and FMCG to drive consumption. 4. Capital Market and Investor Confidence •Stock Market Growth: Positive response from investors post-budget announcement. •Regulatory Stability: Measures to ensure smooth capital flows and encourage investment. •Support for Startups & Entrepreneurship: Tax reliefs and …

Kale Logistics Solutions is all set to develop Africa’s first Airport Cargo Community System (ACS) for use by Mozambique Airport Handling Service (MAHS). The airport handling service company has invested in streamlining its operations digitally to be able to take advantage of Mozambique’s increasing air cargo volumes and potential to become a multimodal cargo hub within Africa. Kale’s ACS provides stakeholders with enhanced visibility and transparency, enabling the real-time tracking and monitoring of cargo movements, incorporating automated regulatory compliance checks. These further streamline operations and ensure adherence to industry standards. In the first phase of the MAHS project, integration of finance and customs systems is to be installed along with the latest GALAXY 3.0 – Kale’s airport cargo digital management system. Vineet Malhotra, Co-founder and Director, Kale Logistics Solutions said, “We at Kale are excited to deploy Africa’s first ACS. We are proud to bring our expertise and best practices to this collaboration, ensuring the highest standards of service and innovation. Developing ACS for a major player like MAHS in Mozambique is a milestone for Kale. We are committed to offer the best-in-class service for MAHS and look forward to having a long-lasting business relationship with them.”    

Vipin Vohra, Chairman, Continental Carriers, said, “Given the space constraints at major airports and increasing international air cargo volumes, the Union Budget must prioritise developing Air Freight Stations (AFSs) across India. These facilities, like ICDs/CFSs in ocean freight, will function as extended cargo handling points away from congested airport terminals, enabling customs clearance and cargo processing at off-airport locations. The establishment of AFS on a PAN India basis would not only decongest airport cargo terminals but also contribute to reducing overall logistics costs.” He hoped, “The budget might propose comprehensive investments in MMLPs that link highways, railways, ports, and airports. This approach seeks to reduce transportation time, minimise logistics costs, and enhance overall supply chain efficiency by developing infrastructure that facilitates quick and efficient cargo movement across the country.”