Back sea

Budget 2022 India

Published:

What does this mean for the Logistics Industry in India for the year 2022-23?

  • The PM Gati Shakti National Master Plan intends to improve the overall logistics infrastructure within the nation. Affirming this, the finance minister Nirmala Sitharaman stated that the plan put into effect will be a transformative approach towards economic and sustainable development driven by seven engines: road, railways, airports, ports, mass transport, waterways, and logistics infrastructure.
     
  • The government plans to build about a 100 cargo terminals by 2025 under the above mentioned plan, with a vision to boost export-import competitiveness. The idea is also to improve employment opportunities for the Indian youth.
     
  • To establish the much anticipated digital movement in work processes, the finance minister announced implementation of Unified Logistics Interface Platform (ULIP) designed for API to ensure smooth and organized flow and exchange of data between operators of different modes of transport. While the aim is to do away with tedious methods of working and reducing paperwork involved; the eventual goal is to improve international competitiveness. 
     

ColliCare India's managing director Mr. Manish Karkun's take on Budget 2022-23

The growth of the logistics sector is critically linked to the growth of trade and economic activities in the country, and the PM Gati Shakti National Master Plan is aimed at positively transforming the shape of logistics sector with a planned first outlay of INR 20,000 Crores. It certainly is a step in the right direction. 

The government aims to lower the logistics cost from prevailing 14% of the GDP to 10% within the next three years to be at par with developed economies around the globe where this spend is between 8-10% of the GDP. To achieve this, the government seeks to consolidate all mode operators (stakeholders) under a single umbrella – ULIP (Unified Logistics Interface Platform). This will result in reduced logistics cost and time involved, thereby improving the overall efficiency in movement of goods; all of which will likely improve India’s standing in the global market.

Multi-modal logistics can expect major push with the implementation of Logistics parks through contracts via public-private partnership (PPP) mode slated to be awarded in 2022-23. 
 
All of the above mentioned plans if implemented successfully and correctly, would primarily improve Domestic Logistics structure. This would help in reducing many ancillary costs involved as well as streamlined processes of documentation involved, thereby favoring the global stance. Hence, things look favourable for ColliCare India in the coming years but for now, one needs to be patient and receptive to the changes taking place in our industry. 
 
Source of information for this news: