While the Government of India is preparing to reveal the budget 2025, the leaders in the industry are asking for strategic investments in the logistics sector to support India’s trading ambitions, improve economic efficiency and empower small and medium businesses (MSMEs). With an export goal of $ 2 trillion by 2030, the achievement of the objectives set out in the National Logistics Policy (NLP) will require daring policy measures, the expansion of infrastructure and regulatory simplifications that promote a seamless trading food system.
Gregory Goba Ble, head of UPS India and Director of Movin Express, underlines the importance of logistical modernization in the realization of India’s economic potential. “Investments in the logistics sector can support India’s trading goals, increase economic efficiency and encourage MSMEs to scale up,” He said, and emphasized the need for budget allocations that prioritize efficiency and global integration.
A critical year
The National Logistics Policy (NLP), launched in 2022, is aimed at reducing logistics cost of 13-14% of GDP to a global measure of 8%, which streamline trading and supply chains. However, achieving this goal requires sustained investments in multimodal transport corridors, digital cargo systems and connection of the last kilometer in emerging industrial zones.
Ble pointed out that simplification of the procedures for compliance with export and reducing regulatory costs will be essential for logistics players to work effectively and remain competitive.
“To further strengthen India’s position in global markets, achieve the purpose of national logistics policy and achieve the $ 2 trillion export goal by 2030, the push must be to simplify export procedures and lower regulatory costs for logistics players, “ he noticed.
A more efficient regulatory framework, along with a larger budget allocation for trading infrastructure, will enable seamless border moving movement of goods, while attracting global companies to cost-effective supply chain solutions.
Empowerment of MSMEs
MSMEs form the backbone of the economy of India, which contributes almost 45% of total exports and 30% of GDP. However, a lack of access to advanced logistics infrastructure impedes their ability to scale operations and compete worldwide.
With the recognition of this challenge, previous budgets introduced several MSME support programs, including credit schemes and digital transformation initiatives. The industry now hopes for further investments in capital access and the adoption of technology, especially instead of Tier 2 and Tier 3.
Goba BL has underlined this point by saying that the government has announced in earlier budget programs and initiatives to support MSMEs, and we expect it to continue. We hope that MSMEs, especially in level 2-3 cities, are further empowered with capital and technology adoption to compete in global markets. “
Through the development of regional logistics hubs and the improvement of transport connectivity, the budget can unlock new MSME’s growths in emerging industrial and manufacturing centers.
e-commerce and border crossing trade
The rapid growth of e-commerce and cross-border online trading has created new opportunities for businesses, but also exposed the regulatory and operational inefficiency. While the e-commerce sector in India is expected to reach $ 350 billion by 2030, its success depends on faster cleanups, improved connection to the last kilometer and a seamless digital payments ecosystem.
Ble emphasizes the need for measures that speed up e-commerce froves and simplify online international transactions and emphasize that “We hope to see measures to speed up e-commerce show and simplify online transactions across the border.”
The export of e-commerce emerged as an important enabler for Indian MSMEs, allowing them to gain access to world markets. However, for this, the government must ensure faster, technical driven clean -up processes, especially for small businesses that navigate international trade for the first time.
Strengthening healthcare logistics
The healthcare and pharmaceutical industries are fundamentally dependent on a robust logistics network, especially for time-sensitive consignments such as vaccines, critical medical supplies and temperature-sensitive medicines. The Covid-19 pandemic has exposed significant vulnerabilities in healthcare logistics, strengthening the urgent need for resilient cold chain networks and specialized transport infrastructure. As India continues to expand its role as a global pharmaceutical center, ensuring a seamless, efficient and well -integrated logistics ecosystem will be critical to maintaining the integrity of the supply chain and to to domestic and international demand comply.
Industry leaders have highlighted the need for increased budget allocations to improve logistical capabilities within the healthcare sector. Ble emphasized this urgency, saying: ‘There must be a greater budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure effective delivery of medical supplies and increase the total effectiveness of the sector to meet pharmaceutical and patient requirements. “
A strategic approach to healthcare logistics investment must prioritize key areas to meet existing challenges. The expansion of cold storage and temperature -controlled logistics is essential to meet increasing demand for life -saving medicine and biologics, to ensure that pharmaceutical products maintain their effectiveness during transport. In addition, the streamline of customs clearance processes for medical imports and exports is needed to prevent the supply chain interruptions and ensure a predictable, uninterrupted flow of essential medical goods.
Furthermore, the use of public-private partnerships (PPPs) can play a transformative role in strengthening delivery networks, especially in rural and sub-earned areas. By promoting collaboration between government initiatives and expertise in the private sector, logistical infrastructure can be expanded and modernized, and ultimately improve accessibility and reduce delays in the distribution of critical health care supplies.
As India positions itself as a leader in the global pharmaceutical manufacturing and exports, targeted investments in healthcare logistics will not only increase supply chain efficiency, but also strengthen the country’s ability to respond effectively to public health challenges. The upcoming budget provides an important opportunity to implement structural reforms and financial obligations that will form the future of India’s healthcare logistics sector, which will ensure resilience and reliability in an increasingly complicated global landscape.
Policy recommendations
As the anticipation for budget 2025 increases, stakeholders in the industry emphasize key areas that urgently pay attention to strengthening economic growth and development. A major priority is the investment in logistical infrastructure, especially with a focus on improving multimodal connectivity, promoting digitization and implementing regulatory reforms to effectively reduce trading costs. Such initiatives are expected to improve the movement of goods streamline and efficiency in the supply chain.
Parallel advocates experts for stronger facilitation of e-commerce trading, with an emphasis on optimizing customs procedures to ensure smoother cross-border online transactions. By improving the digital framework and reducing bureaucratic barriers, e-commerce can further expand, providing greater opportunities for businesses to reach world markets.
Healthcare logistics is also a critical sector that requires dedicated attention. There is an appeal to targeted funding to improve cold chain networks and to streamline the supply chains for medical goods, ensuring timely and safe delivery of essential healthcare products.
Furthermore, there is a growing consensus on the need to support the digital transformation of micro, small and medium enterprises (MSMEs), especially in emerging industrial hubs in level 2 and level 3 cities. Financial support and strategic digital initiatives can empower these businesses to grow and compete in the increasingly digital and global market.
These recommendations reflect a holistic approach to nurturing economic resilience and to ensure that critical sectors receive the necessary resources to thrive in the coming years.
Important budget
With India targeting $ 2 trillion in exports by 2030, the upcoming budget will lay the basis for a modern, efficient and global competitive logistics sector. Strategic investments in multimodal connectivity, digital trading facilitation and regional infrastructure are key to unlocking economic growth and improving India’s trading efficiency.
Goba BL’s insights reflect a broader consensus in the industry that the supply chain efficiency and logistical modernization will be crucial to achieving India’s economic ambitions. The government’s ability to address gaps in infrastructure, determine regulatory processes and support of MSMEs will determine how successful India becomes its path to a global trade force.
