New Delhi, Feb 3 (IANS): The government's drive to boost efficiency in the logistics sector, which is critically linked to the growth of trade and economic activities, is undoubtedly a positive move that will eventually strengthen the sector, as highlighted by industry experts.
Finance Minister Nirmala Sitharaman, in her Budget speech on Tuesday, announced 25,000 km of new highways, PM Gati Shakti Masterplan for expressways and 100 new cargo terminals with multi-modal logistics parks. She also announced an array of initiatives that will connect urban transport to railways, a move that will boost the industry.
"We welcome the positive steps the government has taken for strengthening and further developing the logistics sector under the PM Gati Shakti plan. The expansion of the national highways network, implementation of multi-modal logistics parks and development of 100 new cargo terminals will facilitate swift movement of goods, improve pan-India connectivity and reduce logistics costs," said Kushal Nahata, CEO & Co-founder, FarEye.
In addition to adding new cargo terminals, the Budget has also underlined the government's plan for a sustainable economic revival as it proposed initiatives that favour digitisation of the sector and strengthening of infrastructure. The Budget has also introduced policies that support the survival and growth of MSMEs.
"The Gati Shakti scheme's focus on sustainable growth and digitisation looks extremely promising. The proposed unified logistics interface platform will accelerate the digitisation of the logistics sector in the country. It will help reduce paperwork and aid better logistics and supply chain management. Indian Railways' One Station One Product plan to provide capable logistics services to farmers and MSMEs will ensure that local businesses overcome the existing bottlenecks in the supply chain," Nahata added.
Sudhir Unnikrishnan, Senior Vice President and Managing Director of India, Blume Global, said, "Given that India's supply chain and logistics costs currently account for 14 per cent of the country's GDP (compared to the global average of approximately 8 per cent), this is a great move and will bring India closer to the world standards."
Unnikrishnan also welcomed the mega logistic parks and said, "it will not only generate enormous employment and boost the economy but also make the supply chain leaner by making it a one-stop-shop for multi-modal transport, storage, customs clearance, workshops, yards, parking and much more."
It is worth mentioning that Union Road Transport and Highways Minister Nitin Gadkari had recently announced that around 35 multi-modal logistics parks would come up in the country under the Bharatmala project.