Anurag Mathur, CEO, Savills India on the Union Budget 2023-2024 comments, “The 2023 Union Budget is a testament to the government’s commitment to inclusive growth, with a focus on strengthening the country’s infrastructure, empowering the rural sector, and driving innovation for a better tomorrow. Although the real estate sector did not feature prominently in the budget, derived benefits are likely to give further boost to the sector especially in these times of a ‘Robust Growth Phase’ post the pandemic affected years of 2020 and 2021. A steep rise in Capex to 3.3% of GDP continues to be the guiding force of the budget, providing a strong impetus to infrastructure and allied sectors. Commercial real estate and manufacturing sector will get derived benefits with focus on green technologies in automotive sector. Furthermore, with an annual allotment of INR 10,000 cr towards Urban Infrastructure Development Fund, real estate growth in Tier II and III cities of the country is expected to pick up significant pace. In our recent discourses and publications, we have repeatedly highlighted India’s need for creating a large pool of urban centres. Simialrly, Life sciences sector, which is a key to India’s future economic growth, stands to benefit from a new program for pharmaceuticals, as research gains greater attention. The Budget has also focused on the development of GIFT City which will boost the growth of the financial sector, creating job opportunities and promoting economic development. Direct real estate announcements, although scant this time, included enhanced allocation to the PM Awas Yojana. With a 66% increase in allocation, the total fund outlay touches INR 79,000 cr. The much-awaited direct tax benefits and changes to the income tax slabs are …

Vineet Agarwal, MD at Transport Corporation of India says, “This “Saptarishi” guiding-priorities based Union budget is holistic, optimistic and it beautifully fleshes out the ambitious schemes announced by the government to boost all critical segments. For the Logistics Sector, a committed focus on all tenets under NLP, will definitely lead the country from recovery to resurgence. The increased Capital Outlay for critical Infra projects under the “Inclusive Development” priority will further boost sectoral development. The steep investment increment in digitization and automation to develop smart warehousing, and an announcement of 100 critical transport infra projects for steel, ports, rail and road will strengthen the much-needed multimodal connectivity. Provisions like coastal shipping with Viability Gap Funding (VGF) for people & freight movement will further facilitate seamless cargo movement while reducing logistics costs. The Government’s Green Growth Priority outlines a relentless sustainability vision. ‘National Green Hydrogen Mission’ targets the transition from fuels to green energy. This movement will enable a smooth shift toward the Net Zero Carbon Emission goal. Moreover, the PM Gati Shakti Vishwavidhyalaya facilitates the “Youth Power Priority”, emphasizing on upskilling and creating opportunities for industry partnership. Overall, the 2023 budget outlines a very futuristic glide-path for improving the supply chain ecosystem in India. It will further enhance the export of networked products, thereby indicating a world-class infrastructure and synergy across the logistics value chain.”

Zaiba Sarang, Co-founder, iThink Logistics shares, “Aadopting green and sustainable practices is the way towards future, which has been acknowledged by the government quite profusely in today’s budget. The Union Budget 2023 places a strong emphasis on environmental responsibility. The ‘Panchamrit’ initiative is aimed specifically at achieving net zero carbon emissions by 2070, thus contributing to the green growth of the nation. Continuing to provide impetus for EV adoption in India, the government has taken robust steps through exemptions on customs duty levied upon the machinery imported for the manufacture of lithium-ion cells for EV batteries. The budget has also adequately covered infrastructure development by allocating INR 75,000 crore, including private investment, towards improving first- and last-mile delivery. As a part of the logistics sector, we are extremely elated at the announcement of these provisions, since they will help solve the current connectivity issues facing the industry, while building a more sustainable future for logistics, where efficiency and environmental responsibility come together to form a sustainable ecosystem.”

Cyrus Katgara, Partner, Jeena and Company says, “The union budget seems very positive towards air cargo and we have seen the due recognition given with 50 additional airports, aerodromes and helipads which will tremendously improve the regional connectivity across the country resulting in the growth and seamless movement of air cargo. Further, the prioritization of 100 identified critical transport projects for last/first mile connectivity for ports and other sectors, will provide the necessary boost for the implementation of the National Logistics Policy. The increase in rebate and simplification of income tax slabs will definitely go a long way in reducing the tax burden on individuals.”

Amit Maheshwari, CEO, Softlink Global says, “The budget holds great promise for the logistics industry with its focus on revitalizing infrastructure and boosting the movement of goods. The emphasis on 50 additional airports, heliports, water aerodromes, and critical transport projects will improve connectivity and bring in efficiency thereby reducing costs. The promotion of coastal shipping in a PPP model for both passengers and freight will further the cause of a cost-effective transportation system. Announcements from the budget that will future-proof the logistics sector also include setting up labs for 5G enabled applications development for intelligent transport systems and thrust on Green Growth in transport that will push India’s goal to become net-zero. The logistics sector is largely driven by MSMEs and the government’s announcements on less stringent contract execution and credit guarantee schemes for MSMEs will help businesses affected by the pandemic. The DigiLocker service will facilitate secure online storage and sharing of documents, further improving efficiency in the business ecosystem. The reduction of taxes for entry and middle income group will also encourage the industries across. By improving connectivity and reducing costs, businesses will have greater opportunities to reach new markets, spur innovation, and create jobs. The budget signals a commitment to a better future for the logistics industry and its positive impact on the economy and the lives of citizens.”

Nitish Rai, CEO and Co-Founder, FreightFox said, “The 2023 budget is poised to have a significant impact on the logistics sector. With a focus on modernizing infrastructure and incorporating cutting-edge technology, the budget aims to improve the efficiency and competitiveness of the industry. The allocation of resources toward the development of ports, highways, and other transportation networks will enhance connectivity and promote the seamless movement of goods. Furthermore, the government has increased spending on dedicated freight corridors and logistics infrastructure, which in turn will revolutionize the way goods are moved, tracked, and managed. Also, with decreased excise on compressed biogas (CBG) we can expect to see an increase in CBG production, making transport a lot greener. The 2023 budget, thus presents a unique opportunity for the logistics sector to grow and thrive, positioning it for long-term success.”

Mahesh Trikha,Managing Director, Aargus Global Logistics Pvt Ltd said, “The mere announcement that budget is about to be presented saw Rupee improving vs Dollar, share market reporting upward trend shows the confidence of Industry. The budget seems inclusive with special emphasis to cater to the needs of not only farmers but also poors, infrastructure, Atamanirbhar bharat, roads, and railways are very well covered. The welcome move is on Literacy, libraries, teachers teaching and on research relating to pharmaceutical products. We already are 5th largest economy and am sure this budget will take us to the path of being no. 3 very soon and accomplish goal to be 5 trillion economies as well.”

C K Govil, Vice President, ACAAI shares, “As expected to promote local product of each district and to increase the buying power, and also provide skill training so that the youth of the country can get themselves skilled according to their choice giving opportunity for more skilled labour. All around Development offering more employment and promoting tourism are the key features of this budget. The proposed initiatives to boost the development of logistics and transport infra and new airports will give a boost to the overall sector.”

M Afzal Malbarwala, President, ACAAI says, “The 2023 Budget is as expected pro growth and we welcome the initiatives rolled out to MSME’s. The salaried class and the growing count of Senior citizens are also well considered in this Budget. From a Logistics and Freight industry perspective we expected a improvement in the GST implications post the expiry of the Oct 2022 sunset clause which is missing. This remains as a key missing critical point.

Xerrxes Master, President, Association of Multimodal Transport Operators of India (AMTOI) says, “As a logistician, if we have to come down from 15% to 8% in logistics cost within 5-7 years, then the focus from the government and the quantum of investments should be much more. We have to remember that Indian logistics is fairly unstructured yet large. Sizeable budgetary allocation for logistics infrastructure development backed by incentives for timely completion of these projects is essential. Our expectations from custom departments is to automate or digitalize below identified processes for faster clearance of cargo which will ultimately help in reducing the logistics cost. a) e-KYC Verification norms b) Simplify the processing of export cargo at cargo terminals by using online agreed messages between Custodian and Custom with system integration c) Digital processing of Transshipment cargo to make the process simpler, paperless and faster d) Developing online consol amendment process