After two pandemic-ridden years, the sector has lately shown some good signs. Further it is reported a strong recovery in H2 FY2021, with a 9% sequential growth in Q4 FY2021, says rating agency ICRA.

As per as Information, the Union Budget 2022-23 is suppose to be present on February by Minister of Finance Nirmala Sitharaman which is a special relevance for the logistics sector, especially as it comes against the backdrop of a rising Omicron threat. The spread of highly infectious Coronavirus could throw the critical industry off gear.

After two pandemic-ridden years, the sector has lately shown some good signs. Further it is reported a strong recovery in H2 FY2021, with a 9% sequential growth in Q4 FY2021, says rating agency ICRA. On this consulting firm Redseer has said, “According to the Logistics Skill Council, the Indian logistics sector is valued at $150 billion, contributing 14.4% of the country’s GDP. Further, the road logistics market in India is expected to grow at a compound annual growth rate of 8% in four years, to reach $330 billion by 2025.” 

Nirmala Sitharaman

Further, the road logistics market in India is expected to grow at a compound annual growth rate of 8% in four years, to reach $330 billion by 2025.” 

Meanwhile stakeholders also said that, “sector needs the right set of incentives and support measures to accelerate its recovery. Without support, the sector that keeps trade and commerce moving could get jammed. Sitharaman’s budget for 2022 could be instrumental in catalysing the economic momentum for the sector.” Yogesh Patel, Chief Finance Officer of Mahindra Logistics Ltd, says “We expect the budget to focus on strengthening logistic and related infrastructure and expedite connectivity projects in various economic zones.

This would help reduce logistics cost and time taken for delivering goods, leading to improved productivity. The government should also make a firm move on the National Logistics Policy (NLP) in this year’s budget. It will further the positive impact on the nation’s logistics industry. This will also help to increase warehousing capacity and identify areas for standardisation and optimisation”. 

Budget 2022

It will further the positive impact on the nation’s logistics industry. This will also help to increase warehousing capacity and identify areas for standardisation and optimisation”.