Reactions from industry captains on announcements in the current budget that will have a bearing on the logistics operations of retail businesses
New Delhi: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023, the fifth budget of Modi 2.0 on February 1, 2023. In the last full-fledged Budget before the general elections next year, Sitharaman presented a budget that many consider could lead India onto the growth path of the future. Sitharaman announced major changes in tax slabs under the new tax regime that would put more money into the hands of the middle class and that brings cheers to many businesses from FMCG companies to retailers.
This Budget hopes to build on the foundation laid down in the previous Budget, and the blueprint drawn for India@100. “We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes,” said Finance Minister, Nirmala Sitharaman in her Budget speech.
She further added, “In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. Our current year’s economic growth is estimated to be at 7%. It is notable that this is the highest among all the major economies. This is in spite of the massive slowdown globally caused by Covid-19 and a war. The Indian economy is therefore on the right track, and despite a time of challenges, (is) heading towards a bright future.”
In a series of stories, IndiaRetailing brings you the opinion of leading industry experts on the Union Budget 2023. In the sixth article of the series, we feature reactions to announcements concerning the logistics operations of retail businesses.
Eugene Panfilov, general manager, Borzo
Usage of 5G services to develop intelligent transport systems will greatly benefit the last-mile segment. Setting up of labs at engineering institutes is a good initiative to encourage innovation amongst talent at grass root level. The number of labs should surely increase in the coming years. Route-planning, accurate route identification, accurate real-time diversions will impact the last mile delivery cost and time of deliveries for long intra-city routes. Encouraging innovation and development of 5G network-based intelligent transport systems will further drive the growth of the industry and improve the overall delivery experience for everyone.
However, these 5G enabled innovations should be Open-source as that will greatly help various private firms to integrate the tech with existing internal systems. In addition to this, 5G network’s capabilities will greatly enhance the efficiency and accuracy of last mile delivery proving beneficial for gig delivery partners, who depend heavily on network connectivity.
Nikhil Agarwal, president, CJ Darcl Logistics
This is the first Budget of Amrit Kaal, and we believe that this is a budget aimed at fostering growth. The newly announced one hundred critical transport infrastructure projects will help the country to ensure energy and food security as these are critical for India as it targets to become the third largest economy in the world in the next 6-8 years. The government has also decided to inject 2.40 lakh crore in railways in order to derive the positive outcome on environment sustainability.
As Budget 2023 focuses on promoting coastal shipping, it will play a critical role in the economy’s competitiveness, expansion, and long-term sustainability, which is an under tapped sector. Also, the announcement of 100 labs for developing applications using 5G services will bring in changes across the transport sector including increasingly smart and efficient logistics and improved urban transportation with the implementation of Mobility as a Service (MaaS) platforms. The Budget 2023 has demonstrated a good balance between today’s needs and the future’s demand.
Saahil Goel, co-founder & CEO, Shiprocket
We’re glad to witness infrastructure and reaching the last mile being included in the 7 priorities of this year’s budget. The budget’s focus on transportation and infra projects with the Urban Infra Development Fund will give a boost to the logistics sector. The revamped credit guarantee scheme for MSMEs and the Rs 9,000 crore infusion amount in the corpus would further push the entrepreneurial spirit of the country.
