The Union Minister of Finance, Nirmala Sitharaman is going to present the Union Budget 2022-23, on February 1. The budget is expected to focus on the logistics sector, as the economy has been through the second and third waves of the pandemic. So, the supply chain was affected largely. Along with that, the retail inflation rate is also concerning. Supply chain constraints and rising inflation is worsening the situation. So, an adequate policy measure for the supply chain or logistics sector is much needed.
After the delta variant, the new Omicron covid virus is an additional threat to the country. This variant has been reported to be less harmful to human health, but it is spreading way faster than the earlier variant. So, the supply is also being impacted. A 'Logistics Skill Council' report mentioned that the Indian logistic sector is presently valued at $150 billion. It contributes 14.4% of India's GDP, which makes it a significant part of the system. So, the FM is expected to present budgetary allocation to boost the sector.
To enhance the logistic sector, it is important to improve the related infrastructure and connectivity projects, across the nation. Railway, road, highways, store-rooms/warehouses, etc. are the integrated parts of the sector. So, the infrastructural growth will eventually help the sector to run smoothly. Essentially, the government should also focus on the National Logistics Policy (NLP), according to the industry insiders. An improved logistic sector holds the economic ecosystem together for the overall growth of an economy. Commenting on the budget expectation, Bhavik Chinai, Group CEO, BVC Logistics commented, "We expect the Union Budget to provide for large incentives for jewelry exporters for exporting.
