Satish Lakkaraju, CEO, Garudavega, NexGen Logistics says, “The Union Budget 2025 marks a significant milestone for India’s logistics and trade sector, with a strong emphasis on infrastructure development, digitalisation, and business-friendly reforms. Key highlights include the government’s ongoing focus on PM Gati Shakti, which promises to enhance multimodal connectivity, reduce transit times, and bring down logistics costs. The introduction of Bharat Trade Net (BTN), a unified digital platform for trade documentation and financing, is a game-changer, streamlining cross-border logistics and customs clearance processes. Additionally, the investment in modern air cargo warehousing facilities, particularly for high-value perishable goods, will significantly enhance trade efficiency. The rationalization of TDS and TCS and reductions in import duties on key logistics equipment will ease compliance burdens and make operations more cost-effective. Furthermore, the increase in personal income tax exemption to ₹12 lakh (₹12.75 lakh for salaried employees) is expected to boost consumer spending, indirectly benefiting logistics and e-commerce. This budget represents a decisive step toward India becoming a global supply chain leader. By focusing on infrastructure, digital transformation, and tax reforms, it will empower businesses, strengthen trade efficiency, and create a more resilient logistics framework. With continued collaboration between the government and the private sector, India is well on its way to becoming a logistics powerhouse, enhancing its economic resilience and global competitiveness.”

Amit Maheshwari, CEO & Founder, Softlink Global says, “The Finance Bill 2025 makes some progress in streamlining customs processes and tax compliance for logistics, but it also increases the regulatory burden on freight forwarders. Faster dispute resolution and improved customs duty assessments will help reduce clearance delays, but enhanced powers for reassessments could lead to unexpected cost escalations. A key missed opportunity in this bill is the lack of incentives for AI and automation in logistics. While global markets are actively investing in AI-driven supply chain optimization, India’s logistics sector is left without structured tax benefits for AI-powered automation, paperless trade, and blockchain security solutions. If we want to position India as a global logistics leader, we need policies that encourage digital transformation and next-gen logistics technology. We hope to see these gaps addressed in future reforms.”

To achieve the goal of ‘Viksit Bharat’ 2047, Union Finance Minister, Nirmala Sitharaman presented the Union Budget 2025-2026 focusing on the Micro, Small and Medium Enterprises (MSMEs) to be the second engine of growth for ‘Viksit Bharat.’ The budget also focused on boosting exports out of India especially of high-value perishables and agri produce. Export Promotion Mission to be set up jointly by the ministries of Commerce, MSME and Finance. It will facilitate easy access to export credit, cross-border factory support, support to MSMEs to tackle non-direct measures in overseas markets. Digital public infrastructure for international trade will be set up as a unified platform for trade documentation and financing solutions. This will complement the unified logistics interface platform (ULIP). Support will be provided to develop domestic manufacturing capacities for economies’ integration with global supply chains. PM Gati Shakti data will be made accessible to the private sector, and the development of the top 50 tourist destinations will be carried out in partnership with state governments. Cargo screening and customs clearance processes will be made more user-friendly to improve efficiency and ease for stakeholders. Sectors will be identified based on objective criteria. Presentation groups with participation of senior officers and industry representatives will be formed for selected products and supply chains.  Through this, there will be huge opportunities related to industry 4.0, which needs high skills and talent. The national framework will be formulated as guidance to states for promoting global capability centres in emerging tier 2 cities.  Our government will facilitate upgradation of infrastructure and warehousing for air cargo, including high value perishables and agri produce. The investment and turnover limits for classification of all MSMEs will be enhanced …

Pradeep Panicker, CEO, GMR Hyderabad International Airport said, “India’s strategic location between major East-West trade routes positions it as a prime transshipment hub for global cargo. Leveraging this advantage requires enhancing airport facilities, optimising operations, and establishing dedicated transshipment facilities to better utilise freight capacities. Efficient infrastructure is crucial; modernising roads, railways, and airports, and developing intermodal transportation hubs can boost connectivity and cost-effectiveness. Simplified customs processes, digitised documentation, and reduced bureaucratic hurdles would further improve Ease of Doing Business (EoDB), minimise delays, and cut costs. The key stakeholders in the sector should also emphasise on technology adoption. Incorporating Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, and Data Analytics can enhance supply chain visibility, enabling real-time tracking and monitoring. Automation and robotics in cargo handling will ensure quicker turnaround times and operational efficiency.”

Pramod Menon, Vice President – Cargo, Rainbow Aviation said, “To support the infrastructural growth, there’s need to upgrade airport infrastructure, including cargo terminals, warehousing, and ground handling facilities. Simplify customs procedures and implement a paperless cargo clearance system. Encourage public-private partnerships, offer tax incentives, and provide subsidies for cargo infrastructure development. Implement advanced technologies, such as blockchain and artificial intelligence to enhance cargo handling efficiency and security. Allow bonded trucking for exports out of Mumbai and Delhi Airport, so that big airports can assist in developing smaller Airports like Nagpur, Nasik, Pune, Indore Amritsar which are closer to big airports. Encourage private players to invest in cargo infrastructure development, such as warehouses, cargo terminals, and ground handling facilities. Foster partnerships between airlines, airports, freight forwarders, and logistics providers to enhance cargo handling efficiency and reduce costs. Implement international best practices in cargo handling, such as the use of Unit Load Devices (ULDs) and automated cargo handling systems. Develop skills and training programs for cargo handling personnel to enhance efficiency and productivity. Adopt sustainable practices, such as the use of electric or hybrid ground handling equipment, to reduce carbon emissions and environmental impact.”

Arun Chandra, Vice President – Aviation Business, BIAL said, “Modernising cargo terminals with superior infrastructure, streamlined processes, and digital innovation is essential to unlock the sector’s potential and meet international standards. To support growth expanding cargo terminals at airports essential to handle higher volumes of freight efficiently to not only improve the sector’s competitiveness but also support India’s vision of becoming a global logistics hub by 2030. Establishing strategically located hubs to streamline cargo movement, reduce transit times, and optimise supply chain networks. Leveraging AI, IoT, and automation to improve cargo tracking, reduce manual processes, and enhance operational accuracy. Developing temperature-controlled facilities for perishable goods to maintain quality throughout the logistics chain. Connecting airports to rail and road networks to enable seamless movement of cargo, especially to remote areas, also crucial. To support the growing demand, Public-private partnerships should drive investment in green infrastructure, ensuring sustainability while expanding capacity.  Furthermore, the government, in collaboration with stakeholders, should evaluate existing procedures and processes, aiming to adopt global best practices. This will help streamline air cargo operations in India, making them more efficient and growth focused.  

Amit Tandon, MD & CEO, Asia Shipping India said, “Primary focus should be on improving the utilisation of existing air cargo facilities, at the airports which are often underutilised. The development of cargo hubs, integrated into the broader logistics framework, is essential for enabling smoother cargo movement. Investments in upgrading infrastructure, particularly in tier-II and tier-III cities, should be prioritised to bring smaller airports on par with major ones. This decentralisation would help reduce congestion at primary airports.”

Thai VietJet is planning to increase cargo volumes to support its recently launched passenger operation between Bangkok and Mumbai, said reports. The airline is hoping the route, which was launched in December, will transport general cargo, spare parts and e-commerce shipments out of Thailand. Meanwhile, from Mumbai key exports are expected to include pharmaceuticals and garments. There are also transhipment opportunities through VietJet’s Bangkok hub to its wider Asia network, said reports. The daily flights will be operated utilising the airline’s Airbus A320/A321 aircraft, which offer a maximum cargo capacity of around 16/20 tonnes.

  Dipanjan Banerjee, Chief Commercial Officer, Blue Dart said, “The Union Budget 2025 offers a significant opportunity to redefine India’s logistics and transportation sector through strategic interventions crucial for advancing growth and efficiency. Industry stakeholders eagerly anticipate measures to sustain and amplify the sector’s momentum, focusing on enhancing multimodal connectivity, improving last-mile logistics, and fostering technological innovation. Meaningful reforms and investments are essential to streamline operations, integrate green energy solutions, and create a resilient, future-ready ecosystem driving sustainable economic progress.”