The Union Budget 2024-25 of India introduces a series of impactful initiatives designed to boost the logistics and supply chain sectors. These measures reflect the government's dedication to sustainability, infrastructure enhancement, and fostering innovation.
The budget prioritizes substantial investments in infrastructure, notably the establishment of three major railway economic corridors dedicated to energy, minerals, and cement. Additionally, it focuses on improving port connectivity and developing high-traffic density corridors. These initiatives are anticipated to shorten transit times and cut costs, thereby optimizing supply chain efficiency. This aligns with the Gati Shakti plan’s objectives of promoting multi-modal connectivity and reducing logistics expenses.
To spur innovation within the logistics industry, the budget extends the deadline for startups to qualify for a three-year tax holiday under Section 80-IAC. This extension is particularly advantageous for startups with a turnover of less than ₹100 crore, encouraging the integration of AI-powered solutions and other technological advancements in supply chain operations.
A significant emphasis has been placed on fostering the production of electric vehicles and expanding the EV charging infrastructure. This initiative aims to shift the logistics sector towards more sustainable transportation solutions. The focus on EVs is expected to lower long-term operational costs and enhance the efficiency of last-mile delivery systems, promoting a greener logistics network.
The budget sees an 11% rise in capital expenditure, with significant allocations for upgraded roads, new airports, and advanced railways. This includes the expansion of airport infrastructure and the introduction of new routes under the UDAN scheme, aimed at improving connectivity for tier II and III cities. These developments are expected to enhance logistical efficiency across the nation.
To achieve self-sufficiency in pulses and oil seeds, the government will enhance their production, storage, and marketing. A strategy is being implemented to attain Aatmanirbharta for oil seeds like mustard, groundnut, sesame, soybean, and sunflower.
The Finance Minister proposes to decriminalize delays in TDS payments if made by their filing due date. Additionally, the TDS rate for e-commerce operators will be reduced from 1% to 0.1%.
In summary, the Union Budget 2024-25 brings a strategic approach to strengthen India's logistics and supply chain sectors through comprehensive infrastructure development, sustainable transport options, support for innovative startups, and increased capital expenditure.
Check the complete details on Union Budget 2024:
