Budget 2025 demonstrates the government’s strong resolve to transform India’s logistics sector into a globally competitive ecosystem. By addressing inefficiencies, leveraging technology, and championing sustainability, these reforms are paving the way for improved connectivity, reduced costs, enhance availability of material & information through several transformational initiatives, as described below:

 India as ‘Food basket of the World’ 

One of the prominent themes of the Budget 2025 has been elaborated with introduction of several schemes for enhancing agricultural productivity, quality, seafood exports and food processing, boosting rural logistics, temperature-controlled storage / transportation and export logistics & supply chain opportunities. Some prominent announcements in the Budget 2025 included bringing self sufficiency in edible oil pulses, special program for vegetables & fruits, formation of ‘Makhana board’, scheme for enhancing seafood processing & exports, etc. Untapped regions such as Bihar and sectors such as seafood processing would provide significant opportunities to build & nurture efficient food supply chain.

Cotton and Fertilizer supply chains

Another significant announcement in the Budget 2025 is about ‘Mission for Cotton productivity’ and Urea plant in Assam. Cotton & Urea, being seasonal produce & fluctuating demand commodities, the supply chain constitutes a complex ecosystem. There would be quantum boost to the logistics & warehousing infrastructure & business from these developments.

MSME as a powerful engine for India’s development journey

The Budget announcements are flooded with series of initiatives and schemes to boost the MSME sector. Unlike the large industries, MSME’s supply chain currently lacks maturity due to the limitations of scale and investments. The budget initiatives, such as doubling the investment & turnover thresholds, enhancing credit guarantee cover and several other initiatives for the startups would provide the sector much needed confidence to reform the logistics, warehousing and supply chain technology. This sector would attract organized supply chain players, which would accelerate their growth to spearhead India’s growth story.

Shipping & Maritime industry 

The Budget 2025 provides much needed relief to the ship building industry through exemption of BCD on key raw materials, components, consumables & parts for 10 years. This would boost the ship building industry, leading to large domestic & import – export demand for supply chain eco-system in India. Moreover, the announcement of a corpus of Rs. 25,000 crores for Maritime Development Fund would further enhance logistics support infrastructure for the maritime industry.

Warehousing and Air Cargo

The announcement for facilitation of infrastructure and warehousing for air cargo and stream lining of screening & customs protocols would provide strong traction to the air cargo traffic, reducing delays, additional costs and potential damages / wastages of perishable goods.

PM Gati Shakti

The portal was launched few years ago, to provide a common platform for storage and access of country wide logistics information. The Government plans to provide access of this critical data to the private sector through the Budget 2025 announcement. This would assist the private sector in project planning and improving efficiency in the PPP projects. The records from this portal will be used by the National Geospatial Mission to develop foundational geospatial infrastructure and data.

BharatTrade Net ('BTN') as a complement of Unified Logistics Interface Platform

BTN would serve as an important digital infrastructure for international trade. This would provide a unified platform for import – export trades, with a repository of trade documentation and financing solutions. BTN would be aligned with the international practices. 

Support for Integration with Global Supply Chains

The Budget mentions facilitation by the Government for development of domestic manufacturing capacities for our economy’s integration with global supply chains. Specific sectors will be identified based on objective criteria. Facilitation groups with participation of senior officers and industry representatives will be formed for select products and supply chains.

 

 

 

 

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