Union Budget 2023-2024 presents, path-breaking, budget of ‘Amrit Kaal,’ i.e., next 25 years. Government pushes for 50 additional airports, heliports, aerodromes in India, Rs. 75,000 crores for upgrading transportation infrastructure, Rs. 2.4 lakh crores for development of Indian Railways, a special package for MSME sector and start-ups and lot more.

Nirmala Sitharaman, Hon’ble Union Minister of Finance and Corporate Affairs presented the path-breaking, budget of ‘Amrit Kaal,’ i.e., next 25 years. Key highlights for cargo and logistics sector include- 50 additional airports, heliports, aerodromes in India, Rs. 75,000 crores for upgrading transportation infrastructure. Nearly Rs. 2.4 lakh crores were earmarked for development of Indian Railways, a special package will be allotted for MSME sector and start-ups, three new centers for Artificial Intelligence (AI), and new pharmaceutical research and storage centres. Other focus areas include multimodal infrastructural development by creating more dedicated freight corridors, improving connectivity by road, rail, and sea, and enabling technology driven solutions for improved visibility across the supply chain to accelerate and sustain GDP growth.

Shreegopal Kabra, Managing Director and Group President, RR Global also shares, “India is looking to grow into a 5-10 trillion dollar economy and is on its way to become the global powerhouse by 2024-25. The government’s commitment to WTO and signing many FTAs has allowed the country to continue to upscale the export business. We believe that the government will consider correcting the inverted duty structure across sectors impacting domestic manufacturing, as muted external demand affects India’s exports and current balance.” “With the PM Gati Shakti and National Logistics Policy into play, India is paving its way to become a global manufacturing hub as well. As the sector is on a growth trajectory, we believe that the upcoming Union Budget will prioritize on giving substantial tax benefits to the manufacturing sector and incentives for promoting ‘Make In India’ initiatives. As the government has already given tax relief to corporates, we expect that the manufacturing sector should be given at least 50% concession on income tax. The tax relief given to partnership companies, LLPs and individuals will lead to more disposal of liquidity that will in turn increase the purchasing power and aid in the growth of the economy. “Lastly, I believe that the upcoming Union Budget will help with the overall GDP and creates more demand and job opportunities in the wires and cables industry”

Minister for Ports, Shipping and Waterways Sarbananda Sonowal inaugurated the National Logistics Portal (marine) in New Delhi. It is a one-stop platform aimed at connecting all the stakeholders of the logistics community using IT. The National Logistic Portal (marine) (NLP) is a project of national importance. This will improve efficiency and transparency by reducing costs and promote the growth of the logistics sector. National Logistics Portal will be a single window for all trade processes of the logistics sector spread across the country covering all modes of transport in the waterways, roadways, and airways to provide a seamless end-to-end logistic service coverage.

Hong-Kong headquartered GSSA TAM Group has expanded business operations with the opening of three offices in southeast Asia. In response to growing demand in the region, TAM Group has embarked on joint ventures with Thailand’s GP Group and Vietnam’s TP Cargo Transport Services to launch offices in Bangkok, Thailand and Ho Chi Minh City and Hanoi in Vietnam. TAM Group said: “The move signifies a return to normality for Asia-Pacific’s aviation industry as the world looks beyond the COVID-19 pandemic and into the future. While the global economy has been hampered by multiple headwinds, the region is set to continue along the path to recovery, thanks to burgeoning global and regional free trade agreements.” In Thailand, TAM Group has partnered with GP Group, a Thailand-based strategic investment group with companies in diverse sectors, from logistics and pharmaceuticals to aviation and technology. In Thailand, one of the first partners is Swan Hellenic, a British cruise line specialising in expedition tours of historical or cultural interest aimed at the higher end of the cruise market. Meanwhile in Vietnam, TAM Group’s partner is cargo GSA/GSSA operator TP Cargo Transport Services. Additionally, TAM Group was selected by China Cargo Airlines (CK) as the representative company for the carrier, effective early 2023. CK will operate four flights each week between Hanoi and Shanghai and one weekly flight between Ho Chi Minh City and Kunming.

Kishan Tiwari, Co-Founder and CEO, TSAW Drones says, “As a drone technology and drone development company a more inclusive environment needs to be created for prototyping, testing and making the product market ready. Since drones share similarities with the aerospace domain, testbeds are expensive and limited, and prototyping is costly and limited, and prototyping is costly affair. Government support in this field would give a great boost to the industry. As a drone logistics provider service, linked incentives will be a boost. And more clarity on beyond visual line of sight operation would promote investment in the industry. As a drone manufacturer, I believe PLI schemes should have a plan to indigenous technology. The incentives post a particular tenure should be given only if the manufacturer has indigenized the production to a particular level.”

Karan Shaha, CEO and Co-founder, Vahak shares his expectations from the upcomig budget, “The sector has made enormous strides under the National Logistics Policy’s CLAP, particularly with the recent creation of a network of Logistics Parks that have been mapped using the PM GatiShakti NMP. This will further bring focus on enhancing visibility, improving logistics efficiency, and ensuring optimum utilisation and connectivity. There is a critical need to map these with the requirements of commercial vehicle drivers at the core. Today, nearly 56% of dedicated freight corridors have been completed. We are hoping that the Union Budget will incentivise development to bring 100% closure of these freight corridors. We recommend these projects be given top priority to support a seamless and effective logistics model. We are also hopeful that this Union Budget will look into incentivisation of R&D for the latest alternative fuels – battery-electric, compressed natural gas (CNG), flex fuel, hydrogen fuel cell, fuel efficiency, among others, with relevant charging infra – and technologies like AI, ML, Big Data, GPS, safe driving. Targeted incentives can spur demand for commercial alternative fuel technologies and their adoption, as well as favorable financing for trucker communities, will encourage them to buy green commercial vehicles. We expect this budget to address issues with systemic changes that ensure reliable employment, and fair compensation with minimum wages in the range of Rs. 25,000 per month through the Motor Vehicle Act, and linking of license renewal with social security schemes such as ESI/ PF, life and medical insurance. Through collective efforts, the industry and the government can harmonise demand and supply and drive market scale in the upcoming year.” –

We are getting a second Airbus aircraft in the first quarter of this year. We are looking forward to receive two more freighters at the end of the year,” says Vipul Bhalla, Chief Business Officer, Pradhan Air Express. “We want to offer holistic services to our customers. We might start cross border e-commerce service looking at the traffic. We also hope to work with like-minded agencies to see how this aircraft can assist in relief operations and in other sorts of contingencies where you have to at that time incorporate aircraft from outside. Certainly, having a narrow body single aisle aircraft based in India with an Indian flag can help in that aspect.”

Air France Martinair, part of the KLM Group, has placed a firm order with Airbus for four new A350F freighter aircraft. Martinair is the operating carrier for KLM Cargo. The four A350Fs emit over 40% less CO2 and make 50% less noise than their predecessors. The new aircraft will replace the current Boeing 747 freighters from the second half of 2026. The A350F is the freighter version of the A350. It is fitted with an extra-large cargo deck. Lighter materials have been used wherever possible to keep take-off weight to a minimum. Last April saw Air France-KLM make the announcement that it will finalize its order with Airbus for four new generation A350F freighters, following the earlier commitment announced in December 2021. In combination with the efficient Rolls-Royce Trent XWB-97 engines, this considerably improves performance in terms of CO2 emissions and noise pollution. This aircraft is suitable for carrying a range of cargo, including fresh produce, express shipments, pharmaceuticals, horses, and oversized cargo. The maximum payload of the chosen configuration is 108 tonnes.

IndoSpace has received an investment of US$205 million from Canada Pension Plan Investment Board (CPP Investments). The investment marks the first close for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle, targeting US$600 million of total equity commitments. This is the latest venture between CPP Investments and IndoSpace. The first joint venture, IndoSpace Core, was established in 2017 and now owns the largest portfolio of stabilized modern logistics assets in India. CPP Investments has also invested in ILP III. Following the investment in ILP IV, the partnership will exceed US$1 billion in assets. ILP IV will add an additional 25-30 million square feet to the IndoSpace portfolio, furthering IndoSpace’s leading position in the Indian market. ILP IV will focus on India’s largest logistics real estate markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune. The establishment of ILP IV follows on from the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India. Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments, said, “Over the past few years, we have made numerous investments in India’s industrial space, where we see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures. We are pleased to be working with our longstanding partner IndoSpace to further capitalize on opportunities in this space and believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries.”