Strengthening India's Logistics Sector for Global Competitiveness
Efficient Logistics India is emerging as an attractive destination for global multinational companies seeking to diversify their manufacturing operations. Efficient domestic logistics play a pivotal role in enhancing both national and international trade competitiveness. The rapid improvement of logistics infrastructure, including last mile delivery, growth of small and medium-sized enterprises (SMEs), and favourable government policies will enable the country to secure a larger share in the global manufacturing value chain. These factors serve as key drivers for the economy's transformative growth.
To reinforce India's potential as a manufacturing powerhouse, the budget needs to focus on domestic manufacturing and prepare the logistics sector for service integration, growth in fulfilment logistics, and multi-modal transportation adoption. The government should also consider automation investments, especially in technologically advanced warehouses, which can position India as a logistics innovation leader.
As the 2024-25 Budget looms ahead, heads of companies share their expectations:
Rampraveen Swaminathan, MD & Chief Executive Officer, Mahindra Logistics Ltd.
The upcoming interim budget offers a unique opportunity to balance economic growth priorities and fiscal consolidation. Prioritizing capital expenditure in key infrastructure projects, alongside financial incentives like PLI, tax benefits, and subsidies, can drive innovation in logistics. Building a 'One India' logistics ecosystem and integrating initiatives like the National Logistics Policy and Sagarmala Project are crucial to enhancing India’s global Logistics Performance Index ranking.To reinforce India's potential as a manufacturing powerhouse, the budget needs to focus on domestic manufacturing and prepare the logistics sector for service integration, growth in fulfilment logistics, and multi-modal transportation adoption. The government should also consider automation investments, especially in technologically advanced warehouses, which can position India as a logistics innovation leader.