Union Budget 2021-22 Expectation: Logistic Sector is seeking economic revival, support to entrepreneurial spirit & digitalization

Union Finance Minister Nirmala Sitharaman will be announcing the Union Budget for the financial year 2021-22 on February 1, 2021, in which she will give her best to pull out the economy that was hit by an invisible enemy.

The enemy, coronavirus also known as COVID-19, has had a destructive impact on almost every sector across the world, including India. Even the logistic sector, which is no longer a business process and has turned into an integral part of the value chain operations with e-commerce offering and digital innovations and timely deliveries, has also faced the brunt of the lockdowns and disruptions in the supply chain.

Undoubtedly, after being hit by the COVID, logistics business started opening up soon after initial hiccups after a few months. But the logistics sector that operates on a thin margin had a major impact even of a small stop, due to which it has great expectations from the Union Government in the upcoming Union Budget 2021-22. They believe that the decisions related to the logistics sector are going to play an important role in the logistics sector.

Speaking about his budget expectations, Prasad Sreeram, Founder and CEO, COGOS Technologies, said, "As a Logistics player, we are looking at the spread of Impetus to revive the economy and support the Entrepreneurial spirit by expanding the loan support to startups with NetWorth positive and based on the GST filings, not purely on P&L. The Union Budget should also provide the following support - (A) Subsidy/incentives for using EVs for Commercial/logistics purposes, (B) Incentives for supplies of essential/food products, and (C) Reduction in excise duty on diesel."

COGOS Technologies, India's fastest growing last-mile logistics solution provider also has huge expectations from the government for the Budget.

Ankur Bansal, Co-founder and Director, BlackSoil, said, "Logistics industry is increasingly getting digitalized and such initiatives are also required from the Government. Taxation, payments, and documentation should be completely digitized, possibly through a single window. Investments are also required in automation tech such as warehouse sorting and package labelling to increase efficiency and meet the increased e-commerce demand. Need to encourage investment in tech that will improve operational and cost efficiency in the long-term and make Indian logistics industry more competitive globally."