Budget Reaction 2024-25: Gregory Goba Ble, Managing Director, UPS in India

23 Jul 2024 , 03:33 PM

The Union Budget unveiled recently is a monumental stride towards positioning India as a global logistics powerhouse. It aligns seamlessly with the ‘Make in India’ initiative and lays a solid foundation for India’s future growth. This budget has hit all the right notes – focusing on infrastructure development, leveraging technology & supporting MSMEs including traditional artisans through innovative measures such as e-commerce export hubs.

We commend the government’s commitment to infrastructure development, particularly the announcement of new economic corridors. These initiatives, along with strategic investments in roadways and airports, are poised to streamline logistics operations, reduce costs and enhance connectivity across key regions.

The budget’s focus on MSMEs is particularly encouraging. The provision of no-collateral term loans for manufacturing MSMEs, coupled with expanded MUDRA loan limits and the new credit guarantee scheme will provide much-needed access to working capital to MSMEs. This will empower them to embrace technology and compete globally.

We also applaud the government’s vision in leveraging technology through initiatives like an integrated tech platform for IBC and developing Digital Public Infrastructure. These measures are set to enhance transparency, efficiency & ease of doing business in the logistics sector.

It’s also noteworthy that TDS rates have been reduced from 1% to 0.1% for e-commerce operators – this move simplifies operations while promoting growth within this rapidly expanding segment!

Lastly but importantly – lower customs duties on crucial healthcare equipment & medicines demonstrate strong commitment towards improving healthcare infrastructure via efficient logistics.

This budget, with its emphasis on infrastructure, technology, and support for MSMEs, charts a clear path towards a more robust, efficient, and globally competitive logistics landscape in India.