‘Focus on MMLPs, sustainability, tech’

Varun Gada, Director, LP Logiscience – A Liladhar Pasoo Company says, “In the post COVID era, the Indian logistics and supply chain sector has emerged as a significant backbone for the Indian economy and continues to be the important step to strengthening India’s position as a global economic power. While disruption through geopolitical stressors, further threatened international trade, India has emerged as a stable trade and business economy, thanks to positive government policies. As the Indian government enhances its focus on infrastructure development and bolstering Indian exports through various schemes, I would like to draw attention to the warehousing and contract logistic sector that has become vital in terms of building global supply chains. Currently, the warehousing sector is looking to accelerate digital adoption, embrace greener practices that match international standards, and drive value added collaborations with the manufacturing sector. In the upcoming budget, a focus on the following aspects will be beneficial for the sector:
1.​Reduction in Steel duty/ prices for industrial warehouse construction would be beneficial as up to 50% of the cost of construction of a warehouse is attributed to steel as a major component.
2.​Enhanced focus on improving the road transport infrastructure which can help decongest the existing warehousing hubs, reduce rentals and unlock better value for land available for warehousing.
3.​The government can additionally consider capital subsidies for the construction of grade-A warehouses in smaller towns.
4.​Better Public-Private Partnerships to setup of multi-modal logistics parks with better connectivity to new expressways.
5.​Reduction in solar panel import duties to help reduce capex investments and a re-look at the tax structure and subsidies for environmentally responsible practices
6.​Easier and attractive loans/ access to funds for tech adoption and setting up smart warehouses, especially for the Cold storage and speciality warehousing segment
7.​A focus on easier access to investment for industrial warehousing, including simpler processes for FDI, would be appealing in the 2023 budget.”