The budget for 2018 is out and while there is obvious discussion and analysis around it, we decided to get straight to the point and discuss the highlights of it’s ramifications on the ever growing logistics industry.
Here are the basic highlights for the Union Budget 2018:
Infrastructure developmentThe government is outlining a serious commitment to developing Indian infrastructure. Commitments spanning over ₹ 6 lakh crore rupees have been made towards developing roads, railways and inland waterways. Increasing connectivity of previously inaccessible areas creates not just connectivity of trade routes but also gives major Indian e-commerce players the ability to tap into the vast potential of tier 3+ cities.
Air Transport: With programs like UDAN scheme taking in around ₹ 1014.09 crores to expand their connectivity of unserved airports and helipads, air transport will help take some stress off road and rail transport and greatly save time.
Rail Transport: Being noted at approximately ₹ 1,48,528 crore in an unprecedented allocation, this mode of transport is going to greatly hep augment railways and boost connectivity for one of India’s primary modes of transport.
Telecom: Telecom infrastructure receives aprroximate ₹ 10,000 crores to help augment their capabilities and provide internet access to nearly 5 crore rural citizens.
Setting up NLP
The government’s move to setup a National Logistics Portal signifies the digitisation of functional Indian services. Acting as a single platform to link all stakeholders of the logistics industry by connecting them to a single entity greatly speeds up the workflow that enables daily logistics operations. Implementation of this portal also encourages logistics firms to streamline their operations to comply with this portal.
NITI Aayog to help set blockchain
As we’ve been talking continuously about technology driving modern logistics operations, the government has taken note of these evolving ideas and how they factor into the logistics industry. It’s crucial to note that we are now aiming to not just catch up to these technologies, but rather drive these developments. That’s what NITI Aayog aims to do by initiating a national program to research concepts like artificial intelligence and blockchain.
As the country braces for a strong growth period, logistics industry leaders look to the union government in the hopes of introducing a budget that makes them happy. Beneficial or not, time will tell, but these highlights show that the budget is aimed at not only enabling the industry, but it definitely establishes the foundation for technologies and infrastructure of the impending future.