Union Budget 2022- Key Takeaways for the Logistics Sector
The logistics sector in India is to receive a significant boost as indicated during the Hon’ble Finance Minister’s budget speech today, which highlighted several government initiatives designed to drive growth and digitization.
The minister spoke at length about the Gati Shakti National Master Plan which will encompass the seven engines for economic transformation; roads, railways, airports, ports, mass transport, waterways and logistics infra. The government’s focus would be on planning, innovative financing, use of technology, and speedier implementation.
The Finance Minister announced that 4 multimodal logistics parks would be awarded contracts via the PPP mode in 2022-23, providing modern infrastructure and multimodal connectivity. The MMLPs would also contribute significantly towards driving down the cost of logistics within the country. 100 Gati Shakti cargo terminals were also announced today, which would be developed over the coming 3 years, transforming the logistics landscape in the country.
In a boost to digitization efforts, the minister also announced that data exchange among all mode operators will be brought on the Unified Logistics Interface Platform, which will enable efficient movement of goods through different modes, reduce logistics costs and time and assist in inventory management.
She also highlighted that the government will undertake reforms in Customs Administration of SEZs, making it fully IT driven, with a focus on higher facilitation and only risk-based checks. This will undoubtedly lead to increased ease of doing business by SEZ units. The date for implementation of this reform is to be 30th September 2022.
The Minister’s speech in the Lok Sabha today outlines clearly the government’s vision for Indian logistics and lays the path for the accelerated growth of the sector in India.