The Union Budget 2025 has set the stage for transformative growth in India’s logistics and supply chain sector, with industry leaders welcoming key policy reforms, infrastructure investments, and digital advancements.
Logistics Post-Budget reaction quotes:
CCI Group
“This year’s budget plays a strategic move with stronger emphasis on PM Gati Shakti’s digital infrastructure and its integration with Bharat Trade Net, that will help reduce trade-related costs, streamline compliance processes, and encourage greater private sector participation.
Additionally, AI-driven logistics optimization through the Unified Logistics Interface Platform (ULIP) will enhance transparency and efficiency in supply chain management. We appreciate the rationalization of GST input tax credits, along with the exemption of certain logistics services from indirect taxes, which will provide significant relief for SMEs, improve cash flow and foster a more favorable environment for business growth. On the sustainability front, the reduction in import duties on electric trucks, hydrogen-powered vehicles, and EV batteries will further accelerate the adoption of greener logistics solutions and contribute to a cleaner environment.”
-Naresh Sharma, Managing Director, CCI Group
KSH Distriparks
“As the Union Budget 2025 stimulates consumption while maintaining fiscal discipline, the demand for logistics will rise, with Inland Container Depots (ICDs) playing a crucial role in meeting these needs. By prioritizing the upgrade of air cargo facilities, enhancing warehousing for high-value perishables, and streamlining customs protocols, the budget paves the way for a more efficient trade ecosystem. Reinforcing its commitment to infrastructure development, digital transformation, and policy reforms, the government aims to optimize the supply chain driving cost-effectiveness, global competitiveness, and seamless operations, ultimately propelling India’s journey toward ‘Viksit Bharat’.”
– Manoj Jhanwar, Finance Head, KSH Distriparks
KSH Integrated Logistics
“The Union Budget 2025 has hit all the right notes, adopting a balanced approach to address the multi-dimensional aspects of overall development and fuel the economy. The Budget is well-positioned to support long-term development by providing opportunities for the private sector to actively participate through PPP, EPC, and digital solutions.
The government’s push for private sector integration into PM Gati Shakti signals a shift for the logistics industry. The availability of real-time, relevant data will greatly enhance route planning, reduce transit times, and streamline freight movement. Increased credit limits and expanded classification criteria for MSMEs are essential steps toward unlocking the sector’s full potential and solidifying India’s role as a global manufacturing and export powerhouse.
Additionally, the exemption of certain logistics services from indirect taxes will boost cash flow for SMEs in the sector. As India positions itself as a global manufacturing and export hub, the expansion of cold chain infrastructure for perishable goods—particularly for the agricultural and pharmaceutical sectors—and special incentives for private sector investments in warehousing, including tax benefits for logistics park development, will provide a strong boost to the logistics industry. Moreover, the rationalization of GST input tax credits for logistics service providers will reduce the compliance burden. On the greener front, attention has been given to the EV industry through subsidies for EV adoption in the commercial vehicle segment, particularly for last-mile logistics and hydrogen-powered vehicles.”
– -Snehil A Singhai, Head of Business Development, KSH Integrated Logistics
