Budget 2023: Logistics Sector Seeks Growth-Promoting Measures From Govt

Many experts are also confidently predicting something roughly comparable to the Unified Logistics Interface Platform, which could promote the transparency and visibility of the logistics process

In an endeavor to reduce the cost of logistics, the Center has created a National Logistics Policy to boost the efficiency of India's logistics network.

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In the aftermath of the Covid-19 pandemic, the logistics industry in India today confronts new difficulties after three years of significant turbulence. Currently, the workforce is seen as a serious challenge by various stakeholder groups.

The future development of the logistics sector is anticipated to be driven by the increasing reliance of Indian consumers on e-commerce, the expansion of the small and medium enterprises (SMEs) and business-to-business (B2B) segments, and a government push to enhance exports. In an endeavor to reduce the cost of logistics, the Center has created a National Logistics Policy to boost the efficiency of India's logistics network. While the government has been working proactively to generate value within the sector, it is necessary to undertake further measures similar to these. In consideration of the next Budget, the sector trusts the government to propose growth-promoting measures.

What does the logistics sector need?

To meet the demands of a growing economy, the country's logistics industry requires a large influx of personnel. This includes truck drivers, forklift operators, professional warehouse workers, and others. Stakeholders believe the government has a window of opportunity to solve these and other problems plaguing the logistics sector, which is essential to the functioning of the economy. Some authorities have also paired recent unemployment figures with the need for improved workforce management in logistics. They go on to say that the Budget may outline the many possibilities necessary for implementing, recruiting, and retaining personnel in such a manner that the sector can benefit in the long term. However, the problem is making opportunities in the logistics industry enticing and convincing individuals to consider logistics as a career option.

Wheeling towards the solutions

The logistics sector is the cornerstone of all other industries. Similarly, if the Budget for 2023 focuses on the correct areas of the logistics industry, it will assist other sectors that are interdependent with or dependent on it. The primary priority of the Budget should be to eliminate bottlenecks in this industry by making strategic investments to solve problems like the sector's high logistics costs, which are preventing it from maintaining a competitive export edge in the global market. Second, although we're contemplating budget cuts, we think it's important for the government to work on reducing the cost of doing business in order to aid micro, small, and medium-sized enterprises. Thirdly, investing in areas that would simplify the whole process is crucial since we are all aware that this sector is unstructured and has to be made a bit more organised.

Many experts are also confidently predicting something roughly comparable to the Unified Logistics Interface Platform, which could promote the transparency and visibility of the logistics process. Besides that, the MMLP has already been talked about for a long time, and the industry is fairly optimistic that 2023 will be the year that it really results in more standardised logistics and increased responsiveness to India's hinterlands and remote areas, which have been in the rearview of the system. As one of the largest carbon-emitting businesses, there is hope that this year will see additional expenditure towards achieving carbon neutrality. Better, more sustainable practices are already underway.

The concluding consensus

In an effort to bring order to this chaotic sector, the government developed the NLP. Similarly, there should be an effort where the government designs a plan to simplify the Budget allocation process for all concerned divisions. Grants, penalties, loans, direct service provision, and any other techniques related to this policy should be monitored and managed by a regulatory body, which the government should fund in the forthcoming Budget.

Zaiba Sarang is the co-founder at iThink Logistics.

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