‘Govt must introduce robust capex in developing both physical & digital infra’

Sharing his pre-budget expectations, Ravi Jakhar, Chief Strategy Officer, Allcargo Group said, “The logistics industry is poised to play an enabling role in driving economic growth on the back of policy support, technology integration and continued infrastructure development. Hence, in the Union Budget 2025-26, we expect the government to propose robust capex in developing both physical and digital infrastructures to build the pathway for India to become a $5 trillion economy by FY27-28.  For the logistics industry, the continued push by the government for infrastructure development through initiatives like National Infrastructure Pipeline (NIP), PM GatiShakti National Master Plan, etc. will help the industry make significant progress in achieving efficiency. A robust road, rail, air and waterway networks, growing network of multi-modal logistics parks, developing renewable energy infrastructure and strong digital infrastructure will further expand economic activities geographically, drive sustainability and enhance the service delivery capacity and capabilities for the logistics industry. A sustained capex push will also attract private investment in infrastructure development. However, considering long gestation, government has to take lead in logistics infrastructure capex to boost efficiency in supply chains. In addition, earlier E-commerce and now quick commerce’s rapid growth has underscored the necessity for agile and accelerated distribution capabilities. Therefore, the budget should propose fiscal measures to facilitate adoption of new-age technologies such as AI, automation, IoT so that the logistics industry breaks new grounds in efficiency as well as capacity utilisation and deployment.”