NEW DELHI : Union Minister for Finance and Corporate Affair Smt. Nirmala Sitharaman presented Union Budget 2024-25, in Parliament on Tuesday, July 23, 2024. Here are few of the Post-Budget quotes from the Shipping, Logistics and Infrastructure industry experts.
“The fiscal budget is a strong move towards accelerating India’s growth trajectory with steadfast focus on infrastructure investments to a record Rs. 11.11 trillion ($132.85 billion). Lower corporate tax rate on foreign companies will help attract overseas companies and capital, positioning India as integral to global manufacturing and value chains. Prominent measures on enhancing the skillset of the country’s youth and incentivizing them to join the formal sector is commendable. In addition, duty rationalization on certain products like mobiles, marine items and leather and textile will boost export competitiveness. The decision to set up more integrated industrial parks and e-commerce export hubs will facilitate manufacturing output, boost domestic consumption as well as enhance trade and logistics activity.” – Mr. Rizwan Soomar, CEO and Managing Director, DP World North Africa and India Subcontinent.
“The Union Budget 2024 marks a significant course for India’s economic growth. At APM Terminals Pipavav, we commend Union Finance Minister Nirmala Sitharaman’s strategic vision – particularly the emphasis on streamlining the logistics, boosting domestic manufacturing, and export promotion to catalyze India’s global competitiveness.
The planned reforms in shipping and the critical mineral mission are poised to generate substantial employment opportunities and fortify India’s position in international trade. Moreover, the establishment of innovative E-Commerce Export Hubs through public-private partnerships, will revolutionize our export ecosystem by offering comprehensive services under one roof. We’re especially encouraged by the increased focus on infrastructure spending and investment, which will undoubtedly stimulate economic activity across sectors and regions. These initiatives collectively pave the way for India to reach its ambitious $5 trillion economy goal.
This budget provides a transformative step towards positioning India as a global economic powerhouse in the near future.” Mr. Girish Aggarwal, MD – APM Terminals Pipavav.
“The logistics industry welcomes the 2024 budget and eagerly looks forward to its implementation. The budget addresses crucial aspects that the industry has been keen to see progress on – skilling of youth, empowering the MSMEs, manufacturing, and a comprehensive review of the rate structure for ease of trade.
The removal of duty inversion and reduction of disputes are significant positive steps. However, the main highlights are the continuation of focus on infrastructure i.e. the Rs 26,000-crore boost to road connectivity projects and the sanctioning of 12 industrial parks. The Government’s commitment to maintaining strong fiscal support for infrastructure is commendable.
The establishment of the Gaya node along the Amritsar-Kolkata route is anticipated to greatly improve the Eastern Dedicated Freight Corridor. This development is expected to bring significant advantages to ports in eastern India over the medium term. Additionally, the enhancement of rural infrastructure and the support for an industrial corridor in the eastern region are vital steps forward. India’s plan to establish dedicated e-commerce export hubs will streamline logistics, export clearances, and warehousing. These hubs, functioning as bonded zones, will reduce re-imports with private sector support.
Furthermore, the launch of Phase 4 of the PM Gram Sadak Yojana aims to provide all-weather roads to 25,000 rural habitats, enhancing connectivity. These numerous infrastructure improvements are anticipated to offer faster routes, more options for trade, increased connectivity to rural areas, and reduced costs of travel, sorting, and storing. They will also help reduce the turnaround time of delivery. Essentially, we can utilize smoother roads and shorter routes for transportation, moving away from the expensive and congested routes currently in use. Overall, we are optimistic about these announcements and their positive impact on the logistics sector.” – Mr. Gayomard Driver – Executive Director & Group Chief Financial Officer Jeena and Company.
“This budget is decidedly growth-oriented and strategically positions India to realize its ambitions of becoming a global manufacturing hub and a $5 trillion economy. It emphasizes infrastructure development, tax simplification, and skill enhancement—three critical areas that will enhance India’s alignment with the global value chain. By investing in robust infrastructure, streamlining tax processes, and focusing on upskilling the workforce, the budget creates a conducive environment for India to attract international business and strengthen its manufacturing sector.
Moreover, the budget encourages entrepreneurs to innovate and deliver high-quality products, which is essential for meeting global standards and boosting demand. This focus on excellence and competitiveness is vital for developing an agile and resilient supply chain, positioning India as a key player in global trade networks. As India advances towards its goal of becoming a global trade hub, these measures will play a crucial role in driving economic growth and sustaining momentum towards the $5 trillion economy milestone” – Mr. Rajesh Mehta, Executive Director of Liladhar Pasoo Group.
“The budget announcement by the Hon’ble Finance Minister Smt Nirmala Sitharaman is extremely progressive. The government has continued focusing on steps to help the economy by prioritizing infrastructure development and fiscal discipline. The allocation of ₹11.1 lakh crore, representing 3.4% of GDP, is a significant leap towards transforming India’s infrastructure landscape. We are hopeful that this budget will greatly enhance infrastructure investments, especially in multi-modal transport and state-of-the-art warehousing.
The TDS for eCommerce operators will be slashed to 0.1% from the current 1%, which is commendable. The government’s initiative is crucial to tapping into this massive eCommerce opportunity.
The ₹2 lakh crore allocation for youth employment and skill development is not just an investment but a strategic move to cultivate a skilled workforce. This workforce is vital for driving innovation and growth in the logistics sector, and this investment will significantly improve turnaround times and expedite our progress towards a robust logistics infrastructure. The initiative is expected to create new jobs, stimulate economic growth, and enhance India’s position as a global eCommerce leader”– Mr. Ravi Goel, Chief Business Officer, RapidShyp.
“While the expectation of logistics industry was high from this budget, it does present a market opportunity in Andhra Pradesh. With a special focus on improving Andhra Pradesh’s infrastructure, particularly its roads, the market for the delivery segment can see significant enhancement. The upgraded road infrastructure within key cities such as Vijayawada, Kurnool, Amaravati, Visakhapatnam, and Guntur will facilitate better intra-city logistics. Additionally, the development of the Vishakhapatnam-Chennai Industrial Corridor and the state’s road connectivity to major business hubs like Hyderabad, Bengaluru, and Chennai will streamline the movement of goods, opening up new market opportunities in the south. Prioritizing intra-city logistics infrastructure and highways will be crucial in attracting corporate investments for new market development in the state” – Mr. Eugene Panfilov, Managing Director, Borzo India.
“IndoSpace lauds the government for taking the necessary steps towards developing investment-ready plug-and-play industrial parks with comprehensive infrastructure in 100 cities. Together with states and the private sector, this pioneering step has the potential to transform both industrial development and urban planning in a big way. Under the National Industrial Corridor Development Program, these projects are going to serve as vibrant economic centres that drive development as well as innovation poised to create a lasting impact” – Rajesh Jaggi – Vice Chairman – Real Estate, Everstone Group
“As a fast-growing warehousing and 3PL service provider, I commend the Union Budget for its comprehensive approach to fostering inclusive economic growth. The broad focus on infrastructure development and the transition to solar energy is encouraging. The provision of ₹11,11,111 crore for infrastructure, amounting to 3.4% of GDP, underscores the government’s commitment to robust infrastructure growth. This includes the launch of Phase IV of PMGSY to provide all-weather connectivity to 25,000 rural habitations and the development of essential infrastructure such as water, power, railways, and roads in the Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor.
The allocation of ₹2.66 lakh crore for rural infrastructure development is a significant step toward making rural areas more accessible by road, facilitating easier and more efficient transportation. The focused plan for endowment-rich states, including the Amritsar-Kolkata Industrial Corridor and the industrial node at Gaya, promises to generate significant economic opportunities in the Eastern parts of India.
Furthermore, transit-oriented development plans for 14 large cities with populations above 30 lakh will significantly improve urban mobility and infrastructure, fostering better connectivity and economic activity.
The skilling programme, designed to upskill 20 lakh youth and upgrade 1,000 Industrial Training Institutes, is crucial for creating a workforce capable of adapting to tech-enabled systems and meeting international workflow standards. The exemption of capital goods for manufacturing solar cells and panels reinforces our commitment to sustainable energy transitions, paving the way for greener supply chains. Simplified tax regimes for corporates will reduce compliance burdens, promote entrepreneurial spirit, and provide tax relief.
Additionally, the taxonomy for climate finance will enhance the availability of capital for climate adaptation and mitigation-related investments. Streamlined FDI and overseas investment processes, including facilitating the use of the Indian Rupee for overseas investments, are poised to attract more investments, strengthening India’s position as a global economic powerhouse.
We look forward to leveraging these initiatives to enhance our logistics capabilities, support sustainable practices, and contribute to the nation’s growth story.”– Mr. Varun Gada, Director of LP Logiscience- A Liladhar Pasoo Company.
“The Union Budget 2024-2025 presented by Finance Minister Nirmala Sitharaman is a progressive step for the logistics, shipping, and supply chain sectors. The emphasis on developing Digital Public Infrastructure (DPI) applications will significantly enhance productivity and foster innovation, streamlining logistics operations and creating new business opportunities.
The proposed reforms in the shipping industry, including ownership, leasing, and flagging, are poised to strengthen the Indian shipping industry’s global share and create employment opportunities. The simpler tax regime for foreign shipping companies operating domestic cruises is expected to boost cruise tourism and generate significant employment.
Overall, the budget reflects a balanced approach to fostering growth and stability across the logistics, shipping, and supply chain sectors, which will positively impact the broader economy. – Mr. Vishal Agarwal, Group CEO, Interem Relocations (FSL Group Company).
“We commend the government for its visionary Union Budget 2024-25, which strategically emphasizes infrastructure, manufacturing, and skill development. The spotlight on the logistics and supply chain sector is crucial for India’s growth trajectory. Introducing e-commerce export hubs and industrial centers under the Vikas Bhi, Virasat Bhi scheme is a praiseworthy approach to bolster MSMEs and foster regional development. The government’s commitment to green energy and EV infrastructure marks a significant step towards sustainable logistics. Additionally, the focus on technology and innovation will enable the industry to leverage AI, enhancing warehousing and optimizing every facet of the supply chain. At Bobba Group, we are enthusiastic about these initiatives and look forward to capitalizing on these opportunities to drive innovation, generate employment, and promote balanced economic growth.”- Mr. Balajee Bobba, Director, Bobba Group.