Category Archives: Aviation

Yashpal Sharma, President, ACFI and MD, Skyways Group shares, “The stakeholders in the Logistics Service Providers segment are buoyant by the announcements of enhanced spendings in Infrastructure projects and PLI schemes that will boost manufacturing and eventually greater multi-modal transportation activity and we hope that a decent amount budgeted is spent on Air cargo infrastructure enhancement in the country too. Some Wishlist points were forwarded through MoCA in the pre-budget survey pertaining to exemption of GST on airfreight, compliance difficulty under ITR online filing of (Form 10F), Linking benefits under other products similar to Krishi Udaan would have definitely lifted the spirits in the entire airfreight industry. ACFI is appreciative of the Government’s vision to launch Pradhan Mantri Kaushal Vikas Yojana 4.0. There is a huge need to skill the youth for international opportunities. Opening 30 Skill India International Centres across different States will be a big milestone.”

Gayomard Driver, Group Chief Financial Officer and Board Member, Jeena and Company, suggests, It is a welcome budget as the focus on infrastructure improvement is apparent. Improvement through the revival of airports, helipads, water aero drones, and advanced landing grounds will support quick and efficient logistics. It could also simplify and improve regional air connectivity, further increasing the growth across the logistics sector. The industry is poised to increase commitment towards developing green logistics infrastructure and an increase in green job avenues as a result of the government’s strong focus on green energy and sustainability in the 2023 budget. Globally, supply chain networks are being improved using AI, and now, with the attention on ‘Make AI for India’ and ‘Make AI work for India’, the Indian logistics sector will be able to do that as well. Sustainable practices paired with improved technology will further improve the establishment of lean operations placing a high priority on process optimization, waste reduction, and raising customer value.”

Vineet Agarwal, MD at Transport Corporation of India says, “This “Saptarishi” guiding-priorities based Union budget is holistic, optimistic and it beautifully fleshes out the ambitious schemes announced by the government to boost all critical segments. For the Logistics Sector, a committed focus on all tenets under NLP, will definitely lead the country from recovery to resurgence. The increased Capital Outlay for critical Infra projects under the “Inclusive Development” priority will further boost sectoral development. The steep investment increment in digitization and automation to develop smart warehousing, and an announcement of 100 critical transport infra projects for steel, ports, rail and road will strengthen the much-needed multimodal connectivity. Provisions like coastal shipping with Viability Gap Funding (VGF) for people & freight movement will further facilitate seamless cargo movement while reducing logistics costs. The Government’s Green Growth Priority outlines a relentless sustainability vision. ‘National Green Hydrogen Mission’ targets the transition from fuels to green energy. This movement will enable a smooth shift toward the Net Zero Carbon Emission goal. Moreover, the PM Gati Shakti Vishwavidhyalaya facilitates the “Youth Power Priority”, emphasizing on upskilling and creating opportunities for industry partnership. Overall, the 2023 budget outlines a very futuristic glide-path for improving the supply chain ecosystem in India. It will further enhance the export of networked products, thereby indicating a world-class infrastructure and synergy across the logistics value chain.”

Cyrus Katgara, Partner, Jeena and Company says, “The union budget seems very positive towards air cargo and we have seen the due recognition given with 50 additional airports, aerodromes and helipads which will tremendously improve the regional connectivity across the country resulting in the growth and seamless movement of air cargo. Further, the prioritization of 100 identified critical transport projects for last/first mile connectivity for ports and other sectors, will provide the necessary boost for the implementation of the National Logistics Policy. The increase in rebate and simplification of income tax slabs will definitely go a long way in reducing the tax burden on individuals.”

Amit Maheshwari, CEO, Softlink Global says, “The budget holds great promise for the logistics industry with its focus on revitalizing infrastructure and boosting the movement of goods. The emphasis on 50 additional airports, heliports, water aerodromes, and critical transport projects will improve connectivity and bring in efficiency thereby reducing costs. The promotion of coastal shipping in a PPP model for both passengers and freight will further the cause of a cost-effective transportation system. Announcements from the budget that will future-proof the logistics sector also include setting up labs for 5G enabled applications development for intelligent transport systems and thrust on Green Growth in transport that will push India’s goal to become net-zero. The logistics sector is largely driven by MSMEs and the government’s announcements on less stringent contract execution and credit guarantee schemes for MSMEs will help businesses affected by the pandemic. The DigiLocker service will facilitate secure online storage and sharing of documents, further improving efficiency in the business ecosystem. The reduction of taxes for entry and middle income group will also encourage the industries across. By improving connectivity and reducing costs, businesses will have greater opportunities to reach new markets, spur innovation, and create jobs. The budget signals a commitment to a better future for the logistics industry and its positive impact on the economy and the lives of citizens.”

Nitish Rai, CEO and Co-Founder, FreightFox said, “The 2023 budget is poised to have a significant impact on the logistics sector. With a focus on modernizing infrastructure and incorporating cutting-edge technology, the budget aims to improve the efficiency and competitiveness of the industry. The allocation of resources toward the development of ports, highways, and other transportation networks will enhance connectivity and promote the seamless movement of goods. Furthermore, the government has increased spending on dedicated freight corridors and logistics infrastructure, which in turn will revolutionize the way goods are moved, tracked, and managed. Also, with decreased excise on compressed biogas (CBG) we can expect to see an increase in CBG production, making transport a lot greener. The 2023 budget, thus presents a unique opportunity for the logistics sector to grow and thrive, positioning it for long-term success.”

Mahesh Trikha,Managing Director, Aargus Global Logistics Pvt Ltd said, “The mere announcement that budget is about to be presented saw Rupee improving vs Dollar, share market reporting upward trend shows the confidence of Industry. The budget seems inclusive with special emphasis to cater to the needs of not only farmers but also poors, infrastructure, Atamanirbhar bharat, roads, and railways are very well covered. The welcome move is on Literacy, libraries, teachers teaching and on research relating to pharmaceutical products. We already are 5th largest economy and am sure this budget will take us to the path of being no. 3 very soon and accomplish goal to be 5 trillion economies as well.”

C K Govil, Vice President, ACAAI shares, “As expected to promote local product of each district and to increase the buying power, and also provide skill training so that the youth of the country can get themselves skilled according to their choice giving opportunity for more skilled labour. All around Development offering more employment and promoting tourism are the key features of this budget. The proposed initiatives to boost the development of logistics and transport infra and new airports will give a boost to the overall sector.”

M Afzal Malbarwala, President, ACAAI says, “The 2023 Budget is as expected pro growth and we welcome the initiatives rolled out to MSME’s. The salaried class and the growing count of Senior citizens are also well considered in this Budget. From a Logistics and Freight industry perspective we expected a improvement in the GST implications post the expiry of the Oct 2022 sunset clause which is missing. This remains as a key missing critical point.

Union Budget 2023-2024 presents, path-breaking, budget of ‘Amrit Kaal,’ i.e., next 25 years. Government pushes for 50 additional airports, heliports, aerodromes in India, Rs. 75,000 crores for upgrading transportation infrastructure, Rs. 2.4 lakh crores for development of Indian Railways, a special package for MSME sector and start-ups and lot more.