Union Budget: India’s logistics sector gets a boost to boost its competitiveness
India’s logistics sector, which employs over 22 million people, is considered the backbone of the country’s economy. With the development of e-commerce and government initiatives like Make in India and Digital India, the sector is expected to grow by 15.5% annually which will have a significant impact on the country’s GDP. New era startups are also emerging using advanced technologies such as Al, ML, Big Data and Blockchain. Finance Minister Nirmala Sitharaman announced a budget allocation of Rs.27,482 crore for the Dedicated Freight Corridor Corporation of India (DFCC), a 75% increase over the previous year. The budget speech highlighted the prioritization of 100 key transport infrastructure projects such as last and first mile deliveries to ports, coal, steel, fertilizers and grains with a total investment of Rs. 75,000 crore, of which Rs. 15,000 crore from private sources. This marks a major turning point in the industry’s digital transformation driven by India’s growing e-commerce sector.