Warehousing and logistics sector to get the wanted boost from the budget 2023-24
- February 17, 2023
The union budget 2023-2024 of the central govt. is set to provide a significant boost to the warehousing and logistics sector as the proposal is focused on developing infrastructure with a high-time capital expenditure that will make India a globally connected economy. The finance minister has stated that infrastructure spending is increased by 33% to 10 lakh crore, which forms 3.3% of GDP this year.
The investment in capex is anticipated to further bolster land prices and draw more investors with the demand for warehousing space, particularly in Tier 2 and Tier 3 cities. Furthermore, the urban infrastructure development fund is said to be developed in tier 2 and 3 cities and will enhance the demand for Grade A warehouses in the market. The union budget also extended support to energy transition by parking a capital investment of Rs. 35000 crores.
The MD of Welspun One Logistics Par, Anshul Singla stated that the increase in capex in the union govt. budget will result in infrastructure development and attract investment from the private.
On the same lines, the Managing Director of NDR Warehousing, Amrutesh Reddy said that India is aiming for a net zero target by 2027 and is working towards it. The National Green Hydrogen Mission will look into reducing the carbon footprint and reducing dependency on fossil fuel and this will mark the nation as a tech leader in the emerging industry.
Mr.Swarup Bose, Founder & CEO of Celsius Logistics was all praise for the budget proposal and said that the focus is on infrastructure development. Especially the thrust on developing 50 new airports, water aerodromes, and advanced landing zones as this will offer great opportunity and strengthen the sector. All the proposals are aligned with the NLP.