Key Budget Highlights That will Influence the Logistics Sector in India
Posted Date: 02-03-2020
Major Announcements that Will Influence the Logistics & Transportation Industry
- Creation of National Logistics Policy
- Announcement of E- Logistics Market Place
- Aim at Reduction in the Logistics Cost
- Financial Disbursement of Funds
- The Construction of the Logistics Parks
- Creation of National Infrastructure Pipeline
- Monetization of 12 Highways
In this world of cut-throat competition, the dream of every country is to fuel its economic growth. India, the world’s largest democracy is on the way to scale up its infrastructure to give an impetus to its economic growth rate. Varied sectors act as a milestone to fuel the growth rate of the country. The Logistics and transportation sectors form the backbone of our country that has accelerated the growth of our economy over the years. As the journey of growth and advancement of a country is perpetual, a lot of things have still to be done to achieve the dreams and enhance the overall aesthetics of a country like India. That is why every year at the time of budget formulation the government pays heed to the formulation of some key policies that can transform the current growth scenario of our nation.
This year also when Finance Minister Nirmala Sitha Raman presented the annual budget of 2020-2021, she has announced some major highlights that will have a drastic influence on the growth of the entire logistics industry along with the transportation and warehouse industry.
Major Announcements that will Influence the Logistics Industry & Transportation Industry:
1. Creation of National Logistics Policy: On the rollouts related to the Logistics industry, the Finance Minister announced that soon a National Logistics Policy will be launched in 2020. The purpose of the launch of this national Logistics policy is to clear the roles of Union government, state government, and another key personal’s to root out the obstacles in the way of effective implementation of the logistics policies.
Impact of National Logistics Policy on India: The launch of the National Logistics policy will expedite the transportation of goods effectively from one place to the other by minimizing obstacles. The quick moments of goods and vehicles will impact the packers and movers in India positively. Due to the quick transportation of goods, the turnaround time needed in the delivery of goods will go less.
2. Announcement of E- Logistics Market Place: The major announcement in line with the improvements in the logistics industry is the creation of a single-window E- Logistics marketplace. This announcement will also go a long way in positively influencing the logistics sector. In this budget, the entire focus will be on honing the skills of the logistics staff along with the generation of employment.
Impact of E-Market Place on the People of India: An E-Marketplace will make the import and exports of goods and vehicles quite easy. After the introduction of this e-marketplace the hurdles of industry related to car darriers in India will get exterminated quite easily.
3. Aim at Reduction in the Logistics Cost: In 2020-21 Budget announcements the Finance Minister has unveiled its objective of reduction in the logistics cost. The current annual outlay on the logistics stands on 14 percent of the total GDP. This budget has been presented to reduce this total outlay to 10 percent of GDP by 2022.
Impact of this Budget announcement on India: The reduction in the overall logistics costs will help to change the entire picture of the logistics sectors. More and more people will feel comfortable in availing of the services of the logistics sector. The overall costs of availing of the services of varied sectors related to the logistics will also go down. The costs of acquiring the services of movers and packers in India will also go down. The same can be expected while receiving the services of car carriers in India.
4. Financial Disbursement of Funds: In the financial disbursement for different sectors, a grant of INR 91823 has been allocated for the Ministry of Road, Transport, and Highway. This announcement has been made to improve the infrastructure of the entire road and transportation industry.
Impact of this announcement on the Car shipping industry: This budget disbursement will bring a ray of hope in the professionals who are associated with the car shipping industry. The financial allocation will be used to improve the overall infrastructure and reduce the obstacles involved in the work of car carriers in India.
5. The Construction of the Logistics Parks: The 2020 budget is extremely focused on the rapid development of the logistics industry. In this budget, the dedicated freight corridors and the construction of the logistics parks have been announced so as to fuel the growth rate of the entire logistics sector.
Impact of this announcement: This announcement will ensure the smooth flow of goods and services and will lead to seamless development of the Indian economy.
6. Creation of National Infrastructure Pipeline: A financial grant of INR 100 Crore is proposed in the budget for the creation of the National infrastructure pipeline. This grant will be positively utilized for the creation of roads, railway lines, airports, and other major ports.
Impact of this announcement: The creation of roads and railway lines will smooth the flow of transportation. The growth of the logistics sector will be directly impacted as the transportation of goods will become fast and robust. It will also positively influence the business of Packers and Movers in India by minimizing the total turnaround time needed in the delivery of services.
7. Monetization of 12 Highways:In another announcement in the Union Budget 2020, the announcement of the allocation of INR 1.7 lakh crore is attributed towards speeding and strengthening transport infrastructure by monetizing 12 highways.
Impact of this announcement: This announcement has instilled a ray of hope in the entire logistics sector as this will positively influence the growth rate of the logistics, which in turn, will fuel the growth rate of the Indian economy.
The Wrap Up:
All in all, lots of new announcements have instilled a ray of hope in the entire logistics sector. On the one hand, customers are expecting quick turnaround time of the services, whereas on the other hand, entrepreneurs are looking forward to enhancing their overall profit based on the key announcements of the budget. These announcements if timely implemented no doubt, will transform the growth rate of the logistics industry miraculously. To gear up the pace of growth of the logistics sector lots more efforts has to be made yet and we hope some more effective changes in the coming budget announcements.