Policy and regulatory push needed for logistics sector

After entering the spotlight in 2018, the logistics and warehousing sector had an average 2019 due to the overall economic slowdown and global headwinds.

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Even as measures such as ‘Make in India’ and the implementation of GST have had a positive impact on the sector, more measures on the policy and regulatory front are awaited by all stakeholders. Compared to developed economies, India’s logistics sector still has a long way to go and one way to ensure its growth is for the government to formulate the right policies needed to turbocharge the sector.

In the latest budget, the Finance Minister has made several announcements that will have a direct or indirect bearing on the development of the logistics sector. Let’s take a look at how the recent budget announcements and policy decisions will bode well for India’s logistics industry: Launch of National Logistics Policy Soon: During her Budget 2020 speech, the Finance Minister announced that the government will soon launch the long-awaited National Logistics Policy. This comprehensive policy envisages smooth functioning of the logistics sector by clarifying the roles of the central government, state governments and key regulators. Impact: A formal National Logistics Policy is likely to create a single-window e-logistics market and remove red-tapism from the sector while also generating more jobs. Boost to Infrastructure: One of the biggest announcements of Budget 2020 was the allocation of ₹ 1.7 lakh crore for transport infrastructure in 2020-21. Enhanced and faster development of highways will be a major priority for the government and will include building 9,000-km of economic corridors, 2,500km access control highways, 2,000-km of strategic highways and 2,000-km of coastal and land port roads. Delhi-Mumbai Expressway is expected to be completed by 2023 and the work on Chennai-Bengaluru Expressway is to be started soon. The budget also highlighted the government’s focus on developing inland waterways and the Jal Vikas Marg development.