Representative image for a warehouse.
Credit: iStock Photo
With the Centre set to present the Union Budget 2024 in the Parliament on July 23, stakeholders across sectors and industries hope for certain relief measures that would fuel growth while emphasizing on the significance of Foreign Direct Investments (FDIs).
Logistics and warehousing are the backbone of the supply chain sector that relies on support from government policies.
Speaking on the upcoming Budget for the financial year, Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing said, “The logistics industry serves as the central lever for the efficient growth of all sectors. As the backbone of the supply chain industry, warehousing facilitates systematic storage and inventory management, enabling companies to anticipate demand and seize business opportunities both domestically and internationally."
"Therefore, government support is essential for the sector’s substantial growth. As we approach the 2024-2025 Budget, it is imperative to emphasize the significance of Foreign Direct Investment (FDI) in this industry."
He explained, "Increased FDI will bring the necessary capital, advanced technology, and expertise needed for modernization and expansion. The government can create a more favourable environment for FDI by streamlining regulatory processes, providing tax incentives, and promoting this sector as an attractive asset class for high-net-worth individuals (HNWIs) and institutional investors globally."
According to Singhal, the country's economic growth will depend on efficient logistic and warehousing infrastructure, and he suggests that the government can support this by "simplifying land acquisition, offering incentives for sustainable practices, and lowering provisioning requirements for banks, financing these projects".
Singhal then elaborated: "Additionally, developers can benefit from accessing funds at better rates through partnerships with insurance companies, pension funds, and international lenders, which will help reduce construction and maintenance costs. Encouraging green initiatives, creating worker-friendly environments, and establishing hubs with EV charging points will further bolster the industry’s growth. By addressing these critical areas, the budget will be the catalyst for transforming India’s warehousing sector into a global leader.”