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In a few days, Finance Minister Nirmala Sitharaman will unveil the Union Budget for 2025-26, against a backdrop of significant domestic and global uncertainty. The budget has sparked anticipation for significant reforms in the nation’s infrastructure sector.
With India’s GDP forecasted to expand by 6.5-6.8 per cent in FY2025, industry experts are optimistic that the budget will introduce crucial measures to bolster infrastructure, a cornerstone of the country’s growth. Besides, to support global trade, logistics players are seeking simplification of export compliance procedures, reducing regulatory cost and easing taxation norms.
Here’s what logistics industry expects from the budget
Rizwan Soomar, Chief Executive Officer and Managing Director, DP World Middle East North Africa and India Subcontinent
Investments in logistics infrastructure has a direct impact on growth of trade. Further, increase in capex outlay focused on a multimodal transport ecosystem, modernising physical, digital, and social infrastructure, will help in enhancing India’s connectivity to emerging and mature markets. Railways are the backbone of India’s logistics ecosystem. Look forward to the dedicated rail freight corridors operationalised to scale movement to/from ports and to connect production/consumption centres in India even more effectively. Similarly, the investments in infrastructure and facilities at ports and inland cargo terminals, too, must be encouraged and incentivised. Further digitalisation and automation of freight operations could be prioritised to improve efficiency and reduce the cost of logistics. Sustainability is a vital, underlying aspect of the infrastructure and logistics sectors. Promoting the use of renewable-energy shore power systems at India’s ports and adoption of electric vehicles at ports and logistics facilities through suitable tax incentives will enhance the country’s green credentials in trade. The Budget could also consider introducing new export incentives and strengthening the implementation of existing schemes which will reduce export costs and enhance global competitiveness of India’s goods.
Vivek Juneja, Founder and Managing Director, Varuna Group
As India prepares for Budget 2025, we hope for a strong focus on measures that can truly drive growth in the logistics sector, which plays a pivotal role in the country’s economic progress. The upcoming 2025 budget presents an opportunity to further enhance India’s logistics infrastructure, with a continued focus on multimodal hubs, economic corridors, and modern warehousing facilities. Strengthening these initiatives will play a pivotal role in ensuring more efficient, seamless, and cost-effective movement of goods across the country, aligning with national goals for economic growth. Building upon previous efforts, a deeper emphasis on integrating advanced technologies into logistics operations, especially through the PM Gati Shakti National Master Plan, can significantly boost efficiency and scalability. Further strategic investments in tech-driven solutions will enable more adaptive, intelligent systems that respond dynamically to emerging demands, creating long-term value for the industry and the economy. Policies that encourage the adoption of digital tools for improved supply chain management will be crucial in improving efficiency and reducing operational costs. Additionally, it is critical to support green logistics through targeted incentives for adopting electric vehicles and other sustainable practices. These steps will not only enhance the industry’s productivity but also align it with India’s broader environmental commitments. We are optimistic that the forthcoming budget will introduce policies that create a more integrated, efficient, and sustainable logistics ecosystem
Gregory Goba Ble, Head of UPS India and Director of MOVIN Express
Investments in the logistics sector can support India’s trade goals, enhance economic efficiency and encourage MSMEs to scale-up. To further strengthen India’s position in global markets, achieve the objective of the National Logistics policy, and reach the export target of USD 2 trillion by 2030, the thrust should be to simplify export compliance procedures and reduce regulatory cost for logistics players. We hope to see measures to expedite e-commerce clearances and simplify cross-border online transactions. There needs to be increased budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure efficient delivery of medical supplies and increase the sector’s overall effectiveness to cater to pharmaceutical and patient requirements. In the earlier budgets, the Government has announced programs and initiatives to support MSMEs and we expect that to continue. We hope MSMEs, especially in the tier 2-3 cities, are further empowered with capital and technology adoption for them to compete in global markets.
Girish Aggarwal, Managing Director of APM Terminals Pipavav
The Union Budget 2025-26 can play a pivotal role by granting infrastructure status to the shipping industry, enabling access to affordable, long-term financing for port modernization. Additionally, incentivising green initiatives—such as renewable energy adoption, carbon-neutral operations, and digital transformation—will empower port operators to support India’s net-zero commitments while enhancing competitiveness.
Suresh Kumar R, Managing Director, Allcargo Terminals
Integrating India further into the global value chain and building a globally competitive and robust logistics ecosystem are key to drive sustained economic growth and realising the vision of Atmanirbhar Bharat. We expect continued thrust on capital expenditure for physical and digital infrastructure and emphasis on port infrastructure development for attaining 10,000 MTPA port capacity by 2047. Continued investment to enhance transport connectivity, rail corridors, incentives for adoption of EV trucks and fiscal benefits for developing EV infrastructure will foster sustainable multimodal connectivity. To enhance EXIM trade, we expect the budget to outline policies to leverage existing assets and infra -structure in and around ports. For instance, opening up handling of air cargo by CFS-ICDs, exempting any service such as storage handling of containerised Agri products from the purview of GST. Continuing export promotion incentives and facilitating the development of export hubs will further strengthen Indian manufacturing to be globally competitive and attract investments which will boost Indian exports.
Subhasish Chakraborty, Founder, Chairman, and Managing Director of DTDC Express
In alignment with India’s ambitious goal of achieving a $7 trillion economy by 2030, the upcoming Budget 2025 presents a valuable opportunity to address key challenges related to efficiency, sustainability, and global competitiveness. The logistics sector stands at a transformative crossroads, and the Union Budget 2025-26 holds the potential to shape its growth trajectory significantly.
We encourage the government to prioritise investments in infrastructure modernisation, particularly in the creation of smart logistics parks and multimodal transport networks that embrace sustainable practices. A strong emphasis on green logistics is essential, with incentives to promote the use of electric vehicles, biofuels, and IoT-enabled transport systems. These measures will help lower logistics costs while reducing carbon emissions, paving the way for a sustainable future in the sector.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics
The upcoming budget presents a pivotal opportunity to strengthen India’s logistics and supply chain sector, a backbone of economic growth and a key enabler of trade and commerce. By prioritising infrastructure investments across highways, expressways, multi-modal transport networks, and logistics parks, the government can catalyse sectoral transformation. Accelerating automation, digitisation, and green logistics adoption—backed by advanced EV infrastructure—will foster efficiency and sustainability. Measures aimed at reducing logistics costs, enhancing skill development, and formalising gig economy employment through comprehensive regulatory frameworks will drive inclusivity and innovation. To drive India’s logistics sector toward global competitiveness, we urge the government to prioritise incentives that enhance global connectivity and enable seamless integration with international markets. Additionally, enforcement of targeted incentives for the warehousing sector will not only boost infrastructure development but also position India as a strategic hub for global trade. A forward-thinking budget that addresses these priorities will elevate India’s global competitiveness and position the nation as a leader in logistics innovation and manufacturing excellence.
Naresh Sharma, Managing Director, CCI Group
While the Union Budget 2024 was a fruitful one, driven by the successful implementation of the PM Gati Shakti program, the Western Dedicated Freight Corridor, and the National Logistics Policy, the logistics sector now looks forward to more forward-thinking measures in the Union Budget 2025. We anticipate a strong focus on fostering the adoption of emerging technologies such as IoT, AI, automation, robotics, and 5G, supported by tax incentives and financial backing. Additionally, tech-driven infrastructure like IoT-enabled transport systems, smart logistics parks, and advanced port and highway technologies will be crucial, with Public-Private Partnerships (PPP) playing a key role in expediting development. We expect the introduction of single-window clearance systems to streamline getting approvals from various government agencies within time, cross-border trade, enhancing international competitiveness. We also anticipate an increased capital expenditure on green technologies and sustainable infrastructure, such as hydrogen-powered and electric vehicles, green road networks, and logistics parks, to help foster a greener, more efficient ecosystem. In response to global trade volatility, we foresee measures like interest equalisation and remission of duties and taxes on exports, which will enhance the price competitiveness of Indian exports. Overall, Budget 2025 has the potential to drive innovation, sustainability, and global competitiveness, positioning India as a logistics hub of the future.
Manoj Jhanwar, Finance Head, KSH Distriparks
Inland Container Depots (ICD’s) are critical hubs in the transportation and logistics network, facilitating the movement of goods between ports and inland regions. With the continued expansion of global trade and evolving supply chain needs, the Budget 2025 should introduce targeted tax breaks or grants to incentivise ICDs to modernise their facilities, expand storage and handling capacity to handle increasing container volumes, reduce congestion at seaports and ensure smoother inland operations. Government’s focus on ‘Gati Shakti Program’ is expected to continue in the upcoming budget and special focus may be placed on the development of green corridors (designated routes where vehicles operate with the lowest environmental impact) which will help to optimise the movement of goods and reduce logistics costs.
Snehil A Singhai, Head of Business Development, KSH Integrated Logistics
We expect the 2025 Union Budget to be growth-oriented for the logistics sector, with a focus on reducing logistics costs to single-digit percentages. This can be achieved through a robust digital push and the promotion of technology adoption, including AI, IoT, and other advanced solutions. We believe that only through tech-driven infrastructure, innovative practices, and efficient processes, underpinned by rigorous standards, supply chains can be streamlined, ultimately reducing costs. However, for the rapid adoption of these technologies in the logistics sector, a focus on proper workforce training, coupled with targeted government incentives, will be crucial. Additionally, to enhance competitiveness and align with global standards, the introduction of single-window systems will be essential, ensuring a smoother, more efficient regulatory environment.
Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing
As the Indian industrial real estate sector evolves, the Union Budget 2025 is the key to unlocking transformative growth through targeted policies and fiscal measures. Key interventions such as simplifying land acquisition, fostering sustainability through green building incentives, and reducing construction costs via innovative public-private partnerships can position India as a preferred investment destination. Moreover, Alternative Investment Funds (AIFs) have emerged as critical drivers of real estate financing. Expanding tax benefits and easing regulatory hurdles will encourage confidence and increased capital inflows into the warehousing sector. Extending the scope of section 72A of the Finance Act to classify real estate as a capital-intensive sector could further incentivise investments. Additionally, addressing GST-related issues, such as clarity on input tax credit claims for construction, will provide much-needed relief to developers and align with the government’s vision for ease of doing business.
Dr Ashvini Jakhar, Founder and CEO, Prozo
As India strides toward its ambitious goal of becoming a $7 trillion economy by 2030, the logistics sector is poised to play a pivotal role in driving this transformation. The government’s record-breaking ₹11 lakh crore infrastructure investment has laid a robust foundation with initiatives like multi-modal transport systems, dedicated freight corridors, and enhanced connectivity. The next critical step is translating these efforts into a globally competitive logistics ecosystem. This requires an intensified focus on technology integration. Advanced supply chain solutions powered by AI can boost efficiency, optimise resources, and build more resilient networks. As we approach the Union Budget, it is imperative to introduce measures that incentivise innovation, promote digitalisation, and strengthen the foundation of India’s commerce. These initiatives will not only position the logistics sector as a key growth driver but also establish India as a global leader in supply chain excellence.
Dhruv Taneja, Founder and CEO, MatchLog Solutions
‘The Union Budget 2025 presents an unparalleled opportunity to address India’s high logistics costs, which currently stand at 14% of GDP, compared to the global benchmark of 8–10%. While infrastructure development has been a priority, the focus now needs to shift towards efficiency-driven policies. We urge the government to introduce fiscal incentives for logistics startups innovating in route optimization, multimodal connectivity, and empty container reduction. Tax rebates for businesses adopting AI-powered supply chain solutions and green technologies, such as EVs and alternate fuels, will accelerate sustainability in Logistics. Additionally, the implementation of a unified National Logistics Policy should include targeted investments in digital freight corridors and grants for startups integrating blockchain and IoT for real-time tracking and transparency. Streamlining regulatory approvals across states for freight movement will also reduce bottlenecks and improve turnaround times.
Balajee Bobba, Director, Bobba Group
For the upcoming Union Budget, the logistics sector anticipates measures that enhance business efficiency through tech-enabled, solution-driven offerings. Building on the visionary allocation of Rs 11.11 lakh crore for infrastructure in Budget 2024-25, we hope for elevated steps to empower MSMEs, drive youth skilling, and foster investment-ready industrial parks. Enhanced infrastructure spending is crucial to reduce logistics costs, unlock economic corridors, and fuel sustainable growth. We look forward to policy measures addressing structural bottlenecks, prioritizing renewable energy, and investing in technological innovation and human capital. With these initiatives, the sector is poised to play a pivotal role in achieving India’s goal of becoming a USD 7 trillion economy by 2030.
Ravi Jakhar, Chief Strategy Officer, Allcargo Group
The logistics industry is poised to play an enabling role in driving economic growth on the back of policy support, technology integration and continued infrastructure development. Hence, in the Union Budget 2025-26, we expect the government to propose robust capex in developing both physical and digital infrastructures to build the pathway for India to become a USD 5 trillion economy by FY27-28. For the logistics industry, the continued push by the government for infrastructure development through initiatives like National Infrastructure Pipeline (NIP), PM GatiShakti National Master Plan, etc. will help the industry make significant progress in achieving efficiency. A robust road, rail, air and waterway networks, growing network of multi-modal logistics parks, developing renewable energy infrastructure and strong digital infrastructure will further expand economic activities geographically, drive sustainability and enhance the service delivery capacity and capabilities for the logistics industry. A sustained capex push will also attract private investment in infrastructure development. However considering long gestation, government has to take lead in logistics infrastructure capex to boost efficiency in supply chains.
Vishal Aggarwal, Group CEO, Interem Relocations, FSL Group
The logistics industry faces mounting pressure from rising fuel costs, labour shortages, and fluctuating raw material prices. As we approach the budget, we need to consider measures that address these rising costs, from providing tax relief to incentivizing innovation in energy efficiency. The integration of digital tools and systems will not only streamline operations but also enhance visibility, reduce costs, and improve customer satisfaction. Government support for digital adoption in logistics will be a game-changer for the industry. With the global landscape shifting, it is imperative that the logistics sector works closely with governments to shape trade policies that facilitate smoother cross-border trade. Simplified customs procedures, reduced tariffs, and streamlined regulatory frameworks will enhance global trade flows and create a more efficient logistics ecosystem.
Pushpank Kaushik, CEO & Head of Business Development (Subcontinent, Middle East, and South East Asia) of Jassper Shipping
The Union Budget 2025-26 is expected to strengthen India’s logistics sector by implementing certain measures to accelerate the Maritime Amrit Kaal Vision 2047, ultimately supporting the country’s blue economy. The government is likely to allocate funds for effective implementation of the Gati Shakti Master Plan to create a multi-modal logistics network, streamlining cargo handling and optimising supply chain efficiencies. The budget may further incentivize the adoption of digital technologies to perform real-time tracking and AI-based demand forecasting which will drive efficiency and accuracy within the sector.
The government is expected to introduce funding for green initiatives especially EVs that promote sustainability, aligning with global best practices and India’s commitment to reducing carbon emissions. The government may also set ambitious targets for improving India’s ranking in the World Bank’s Logistics Performance Index, focusing on areas like customs clearance efficiency, trade-related infrastructure, and further improving the quality of logistics services.
Ketan Kulkarni – Managing Director – Gati Express and Supply Chain
Aligned with India’s ambitious vision of becoming a USD 7 trillion economy by 2030, Budget 2025 must prioritise rapid infrastructure development to enable the logistics and transportation sector to realise its full potential as a catalyst for economic progress and sustainable growth. We hope Budget 2025 will reflect the government’s commitment to continuity in reforms, stable decision-making, and progressive policies. Such measures can unlock industry potential by promoting breakthrough technological innovations, empowering start-ups to adapt to an evolving landscape, and bolstering the sector’s competitiveness and resilience. The industry anticipates bold initiatives aimed at improving last-mile connectivity and transformative reforms to strengthen the logistics and transportation ecosystem. A key expectation is the incentivisation of EV charging infrastructure, which is critical to driving sustainability through greater adoption of electric vehicles in logistics operations. Furthermore, the budget presents an opportunity to enhance the ease of doing business through initiatives like ‘Jan Vishwas Bill 2.0’ and accelerating digitalisation efforts to optimise regulatory processes. Increasing the collateral-free Mudra loan limit and establishing dedicated e-commerce export hubs would also be significant in fostering the growth of MSMEs, a crucial driver of India’s economy. By placing a stronger emphasis on digital transformation, Budget 2025 could significantly improve the efficiency and agility of the logistics sector. This would align the industry with global standards while creating a competitive and future-ready ecosystem that underscores the government’s commitment to a seamless and resilient business environment.
Arshdeep Singh Mundi, Executive Director, Jujhar Group
“The surge in cargo handling by automobile manufacturers highlights the growing demand for efficient and scalable logistics solutions. Rising vehicle production and expanding market reach necessitate advanced technologies like automation, real-time tracking, and predictive analytics to streamline operations. Just-in-time manufacturing and cost-effective transport require seamless coordination and minimal handling. Innovations such as autonomous vehicles and sustainable fuel options are shaping a greener logistics future.
Gayomard Driver – Executive Director & Group Chief Financial Officer Jeena and Company
As a key driver of India’s economic growth, the logistics industry anticipates The Union Budget 2025 to prioritise efficiency and innovation. Simplifying GST, accelerating multi-modal logistics parks, and incentivising green logistics are essential to align with the National Logistics Policy. While technology will continue to be the transformative power revolutionising logistics operations and enhancing connectivity; it is equally important to focus on the training and skill development of aspiring professionals to remain competitive in the digital era.
Vivek Merchant, Director, Swan Defence and Heavy Industries
The Indian government’s emphasis on improving shipping infrastructure and promoting indigenous shipbuilding has significantly transformed the sector. India holds a mere 0.05 per cent of the global market share in shipbuilding, in stark contrast to China (47 per cent), South Korea (30 per cent), and Japan (17 per cent), which currently dominate the industry. Therefore, new Government initiatives and improved budgetary allocations for ports and shipyards could be game changers, showcasing a clear vision for a robust maritime economy. The announcement of India’s Maritime Development Fund (MDF) for long-term indigenous manufacturing projects and the anticipated Shipbuilding Subsidy (SBS) Policy 2.0 could further strengthen the ecosystem, encouraging greater self-reliance and competitiveness. As we approach 2025, it is crucial for the Union Budget to prioritise investments in shipbuilding infrastructure, incentivise green technologies, and create export opportunities for Indian shipyards.
Anish Kumar Jha, Managing Director, Kuehne+Nagel India, Sri Lanka and the Maldives
The logistics sector drives India’s economic growth and global competitiveness. The government’s focus through PM Gati Shakti’s initiatives and the rollout of the National Logistics Policy has brought the importance of logistics and the reduction in logistics costs to the fore. The upcoming budget presents an opportunity to further accelerate this progress by addressing key areas that can unlock the sector’s immense potential. With focused efforts on simplifying processes and providing comprehensive training, the Unified Logistics Interface Platform (ULIP) can revolutionize real-time tracking and end-to-end visibility, transforming logistics efficiency in India.
Similarly, the rail sector can play a more significant role in India’s logistics landscape by expanding into packaged goods and multimodal movements. By addressing pricing, improving infrastructure, and creating direct routes to minimize damages and enhance reliability, rail can emerge as a competitive and sustainable logistics solution. Furthermore, government investments in hinterland-to-port connectivity are vital steps towards driving efficiency, lowering costs, and enhancing India’s position as a global logistics hub.
Dipanjan Banerjee, Chief Commercial Officer, Blue Dart
The Union Budget 2025 offers a significant opportunity to redefine India’s logistics and transportation sector through strategic interventions crucial for advancing growth and efficiency. Industry stakeholders eagerly anticipate measures to sustain and amplify the sector’s momentum, focusing on enhancing multimodal connectivity, improving last-mile logistics, and fostering technological innovation. Meaningful reforms and investments are essential to streamline operations, integrate green energy solutions, and create a resilient, future-ready ecosystem driving sustainable economic progress.
Swarup Bose, Founder & CEO at Celcius Logistics
We are optimistic that the Union Budget will prioritise the development of cold chain infrastructure and the integration of advanced technologies within the logistics sector. India’s cold chain industry, valued at approximately USD 35 billion, is vital for ensuring the quality of perishable goods. The sector is set to experience transformative growth, with projections indicating it will reach USD 50 billion by 2027.
The substantial investment required for digital adoption in the cold supply chain sector remains a significant challenge. Provisions for foreign direct investment (FDI) and capital support would facilitate the integration of advanced technologies, empowering stakeholders to embrace smart solutions. Besides, temperature-controlled warehousing is both capital-intensive and crucial. Subsidies tailored to the unique needs of sectors such as fresh foods, dairy, meat, processed foods, and pharmaceuticals would enhance access to efficient cold storage solutions. Also, with India’s where food loss amounting to about Rs 1.53 trillion (USD 18.5 billion) annually, fostering PPPs can provide farmers with access to effective cold chain infrastructure, improving food distribution and reducing wastage.
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