Shankar Shinde, Chairman, FFFAI shares his views and expectations from the upcoming budget, he says, “Logistics is the backbone of the whole economy and when you talk about progress, nothing comes without logistics. We have seen that the government is placing more emphasis on this logistics development, infrastructure development, reducing dwell time and reducing the cost across the logistics sector. What we talk about, and that is where we envision that with this, we will have a lot of opportunities across the world bringing an alternative where we find presently China’s economy is being shaken, not stable. We found that the European US sanctions are doing good for the Indian market to Russia and again the Ukraine-Russia war has given access to these Iranian sales across countries so there are a lot of opportunities which will come across and whenever there is an opportunity for the production it is always a logistics company which will take over. So we find that in the future there will be a big scope for the logistics into this industry, for the logisticians. Also digitalization has taken over, there is a disruption in the whole system with this technology. But it’s a good welcome move because when it comes to digitalization, we get a real study, the real things as to what is required for the government, what is required for the trade, to foresee the future aspects of promoting the products into the international market. So this is where we find and as far as the budget is concerned, investors with a lot of facilities which have been extended to the logistics sector. With Digitalization, the new platform coming up, there will be …

Tushar Jani, Group Chairman, Cargo Service Center shares his expectations from the upcoming budget 2023-2024, and says, “I think the first thing itself, is the Prime Minister declaring National Logistics Policy and with Gati Shakti Program, it is very clear that the government is focusing on logistics. In fact the world is focusing on the supply chain and India cannot be in isolation. With the world supply chain now taking the center stage, India is going to be a global supplier for so many things. For example iPhone, now its third factory coming in, and Pharma, which is world’s generic drug, 20% is supplied by India. We are a world pharmacy and in that respect, I think we are a sunrise industry. India is probably the only country which is growing above 6% in GDP in time to come. That itself is good news and that will need an efficient, and resilient logistic supply chain. Having said that, it needs a lot of support. Just to start with GST, which is now put in for 18% on the air freight and the argument from the government is that the stakeholders can claim reimbursement later. My point is it should be rationalized and should be a lower percentage so at least the cash flow is not impacted for exporter importer as well as for the forwarding and logistic company. I think the government should take that first step. The second step is, of course, the very old demand of the aviation turbine fuel which is still very high and it should be rationalized that will help bring more air freight operators in civil aviation in terms of air freight airline to …

We are planning to expand our operations and add air cargo capacity in strategic phases so that we can follow an efficient and sustained growth to optimize our operations and deliver excellence, says, Abhishek Goyal, Director, Aeroprime Group. “We plan to add more capacity in passenger aircrafts belly space and freighter operations from multiple cities in India in 2023 to support growth of the industry,” he adds. “The key drivers for air cargo sector growth would be the increased capacity offered by passenger flights and freighter operations along with increased demand for pharma and perishable exports from India. Government policies favouring air cargo export can further support growth in 2023,” he shares.

Lalit Das, Founder of 3SC Analytics shares his expectations from the upcoming budget 2023-2024 and says, “The finance minister can address the challenges faced by the logistics sector in several ways in the Budget 2023. One of the key ways is by ensuring easy funding availability to start-ups in the sector. This can help these businesses to overcome financial barriers and scale up their operations. The finance minister can also consider providing tax rebates to start-ups in the logistics sector, which can help these businesses to reduce their costs and increase their competitiveness. Another way to support the logistics sector is by emphasizing the importance of enhancing the digital ecosystem. This can include measures such as providing tax incentives to businesses that adopt digital technologies or investing in infrastructure to improve internet connectivity. In addition, the finance minister can consider providing a rebate for those involved in exports and bringing foreign currency into the country. This can encourage more businesses to participate in international trade, which can, in turn, help unleash export opportunities for the logistics sector. Finally, the finance minister can also focus on promoting more foreign direct investment (FDI) in the logistics sector, which can help bring much-needed capital and expertise.”

Logistech Solutions Pte Ltd, which runs logistics startup Locad has raised $11 million (Rs 90 crore) in a Series A round, led by Reefknot Investments, a joint venture by Temasek Holdings and logistics firm Kuehne + Nagel. The round also saw participation from existing investors Sequoia’s Surge, Febe Ventures, Antler, Access Ventures and JG Summit. Shrey Jain, co-founder and chief technology officer at Locad, told VCCircle that the fresh proceeds will be deployed to boost growth, which includes investing in marketing, brand building and networking, as well as acquiring customers on the enterprise side. “We always have been focussed on maintaining at least up to three years of runway with the cash that has been raised,” Jain said. Founded by Jain, Constantin Robertz and Jannis Dargel in 2020, Locad enables e-commerce brands with a cloud supply chain to grow their omnichannel business. So far, the company claims to have served over 200 brands across Singapore, Philippines, Thailand, Hong Kong, and Australia and shipped more than two million transactions while maintaining a 99% same-day order fulfilment rate.

TT Aviation, which started its operation from 2010 in the Customs Bonded Trucking domain, has added Kolkata (CCU) in their network and got the necessary Customs approvals to start Export Bonded Trucking from Kolkata WEF Jan’23. In H2 2022, Kolkata was primarily used for import bonded trucking destination and successfully offloaded 150+ trucks. Kolkata is the 9th station in the network after MAA, HYD, BLR, COK, CJB, BOM, DEL & AMD, which is capable for both import and export bonded trucking activities. With this addition, the freight connectivity from Kolkata has been widened for the trade and it will connect Kolkata to all major metro/non metro air cargo terminals between 72-120 hrs. Size and shape of the cargo will not be a showstopper anymore and at the same time there will not be any commodity restrictions too. The road connectivity from Kolkata will reduce the logistics cost by approx. 10-14% for air cargo.

Nisschal Jaain, Co-founder and CEO, Shypmax shares his expectations from the upcoming budget 2023-2024, “With the upcoming budget, the Indian e-commerce logistics sector is expecting some clarity on the de-minimis (threshold) value. Currently the de minimis value for India, for e-commerce import is 0 which means that all orders into India, regardless of value, will often incur GST on their shipments. Items imported into the United States are subject to duty when the value is over USD 800. In Australia, duty and taxes kick-in after the first USD 1,000. In Canada, it’s USD 20; in some other countries, it’s USD 5. It is evident that individuals will buy more if duties are exempted or reduced. In the 2022-23 Budget, implementation of a simplified regulatory framework to facilitate export of jewellery through e-commerce was introduced however it was limited only through ECCS (Express Cargo Clearance System) at ICT Mumbai, ICT Delhi and ICT Jaipur, according to Central board of Indirect Taxes and Customs (CBIC) SoPs. Stakeholder are awaiting more details on the same from the upcoming budget. Additionally, the limit of Rs. 5 lacs worth of exports via courier under CSB-V, which affects the fine jewellery’s export, is counterproductive and confusing for the e-logistics players as well as the exporters.”

Yogesh Dhingra, Founder, Managing Director and Chief Executive Officer, Smartr Logistics says “In line with the recently launched National Logistics Policy and the PM Gati Shakti scheme, reducing overall logistics costs in India from approximately 14% currently to under 10% of GDP is a priority for India. The upcoming budget would expect to build upon the work outlined in the prior year with a focus on multimodal connectivity and improving physical infrastructure. We could expect to see more allocation for the national highway network, towards rail infrastructure in an expansion of tracks as well as container capacity, development of cargo terminals and warehousing capacity which will further strengthen the groundwork for an integrated logistics system. We would also expect the government to continue to build on the UDAN scheme with new airports for enhanced regional connectivity and increased capacity at existing airports. We are certain that the government’s strategic moves will continue to develop the logistics sector and improve India’s supply chain competitiveness.”

Sanjay Bhatia, Co-founder & CEO, Freightwalla also shares, “In the upcoming budget, a further focus towards holistic infrastructure creation would significantly help the MSMEs and large exporters. In the infrastructure, crucial attention must be given to digitisation of the entire supply chain system for smooth functioning and lowering the logistics cost that benefits the MSME exporters. A budget allotment towards digitisation will be a catalyst for the EXIM fraternity. Special emphasis on container manufacturing, budget allocation for strengthening inland waterways and boosting multimodal connectivity will help bolster the exports. Broadening the scope of the PLI scheme by incentivising other segments like apparel, chemicals, and heavy machinery would also help significantly in boosting India’s exports. 6.3 crore MSMEs of India are the economy’s backbone by generating over 11 crore jobs and contributing over 30% to India’s exports. Despite such a robust presence, most of these MSMEs face multiple challenges in their day-to-day life. A seamless supply of working capital is one of them, due to which their production growth is hindered, and the balance sheet is affected. Targeted efforts towards creating a long-term solution for addressing working capital needs at a subsidised rate for rural and semi-urban micro and small enterprises will help them get in the export race with their larger counterparts. Some specialised incentives for women entrepreneurs, especially from rural areas, would also be instrumental in bringing much-needed gender parity.”

Nitish Rai, CEO and Co-Founder, FreightFox says, “Sub-par transportation infrastructure and poor on-the-go visibility are the country’s biggest problems, and the government has taken initial steps in the right direction towards improving it. 1. Greater push towards completion of DFCs and expressways will help increase utilisation of resources and improve speed of goods movement. 2. Inclusion of fleet owners under the GST, would help them save upto 10% of their costs incurred towards new fleet, tyres, etc. 3. bringing diesel under the purview of GST has been mulled over, but this step can further lower costs upto 7-8% for fleet owners 4. We also expect more support for our transporters on the road, especially in the form of affordable board and lodging. 5. Investment in digital R&D for the supply chain is critical, especially in an era of hyper-competition and significant opacities along the way. In the current economic climate, supply chain efficiency is vital to ensure that India’s economy stays robust. Making that a reality requires government support- and we’re confident the 2023 Budget will reflect that.”