As we gear up for the upcoming budget, all eyes are on how the government plans to rein in India's sky-high logistics costs, currently devouring a staggering 13%-14% of our GDP. However, there's a strong buzz about some game-changing strategies that could be in the pipeline! Crunching the Numbers: Let's break it down, Logistics costs at 13%-14% of GDP is a hefty burden on our economy. Yet, there's optimism that with strategic interventions, this number could be slashed significantly. By streamlining supply chains, cutting down delivery times, and ramping up operational efficiency across the board, especially for our booming e-commerce sector along with working out Integrated Supply Chain solutions is crucial to streamline supply chains and reduce costs. But wait, there's more to this equation! “Need is of Digital Revolution in Logistics Infrastructure Space and Focus on Green Energy” Just Picture a world where every step of your supply chain is seamlessly integrated and tracked in real time. That's the power of digital infrastructure! Investing in technologies to automate the workflows isn't just about staying ahead; it's about transforming how we do logistics. The buzz is that the budget might unveil ambitious plans to boost digital connectivity across logistics networks, paving the way for unprecedented efficiency gains and the government’s commitment to promote green logistics towards a cleaner, more cost-effective logistics sector. Imagine fleets of electric vehicles humming along our highways, powered by renewable energy sources. Not only does this reduce carbon footprints, but it also cuts down on fuel costs and enhances operational efficiency. You must be thinking, Why It Matters? Well, imagine the ripple effect across industries. Lower logistics costs mean businesses can price competitively, expand operations, and reach new markets more efficiently. It's about boosting economic growth, creating jobs, and fostering innovation. These aren't just lofty goals; they're achievable with the right strategies in place! With strengthened infrastructure, advanced digital tools, and a greener approach, the upcoming budget holds the potential to unleash a wave of reforms and investments that could redefine India's logistics landscape. So, let's stay optimistic, stay informed, and brace ourselves for what could be a monumental leap toward a more efficient, sustainable, and digitally-driven logistics sector.
Vipul Gupta, CFA, CA’s Post
More Relevant Posts
-
As FM Nirmala Sitharaman prepares to present the first Union Budget for the third term of the Prime Minister Narendra Modi-led government on July 23, the general expectation is that the FM will choose policy continuity 👇 In terms of policy continuity, the infrastructure sector is likely to emerge as the biggest beneficiary as the Modi government has focussed on higher capital expenditure for infrastructure and job creation. As such, ahead of the Union Budget 2024-25, the startup ecosystem is looking at the expected announcements on the broader themes to ride on the India growth story. Within this, the logistics startups are banking on the expected push for infrastructure creation to give an impetus to their growth. A common theme across the board is the demand for building ports, roads, and airports as well as digital infrastructure to reduce logistics costs. Mahindra Logistics’ Rampraveen Swaminathan expects the Centre to continue emphasis on green energy and strong EV infrastructure to accelerate transition towards green logistics. Logistics startups are looking at the Budget to scrap the contentious angel tax, launch domestic investment schemes, and simplify taxation regime. #Budget4startups #budget #startup
Budget 2024: Logistics Startups Pitch Infra Push To Power Growth
inc42.com
To view or add a comment, sign in
-
Talking to Fortune India about expectations from the upcoming Budget 2024, Harpreet Singh Malhotra, Chairman & Managing Director, Tiger Logistics shared "Building on the positive steps taken in the interim budget, it is essential to prioritise a well-distributed allocation for the logistics sector in the upcoming budget. This should ensure continued transformation across all aspects. Infrastructure development, dedicated economic/freight corridors, and continued investment in seamless customs processes and multimodality are all crucial for a more efficient and integrated logistics network. Such a comprehensive approach will be instrumental in propelling the overall transformation of the sector and India's economic growth." Ashutosh Kumar
Budget 2024: Logistics sector seeks infra, economic corridor, digital fillip
fortuneindia.com
To view or add a comment, sign in
-
The logistics sector would greatly benefit from enhanced connectivity of railways, roads, and ports. Prioritising infrastructural development can reduce logistic costs, improve supply chain efficiency, and foster economic growth by establishing robust and integrated transport networks You can read my thoughts on Union Budget 2024 in Inc42 Media’s article “Budget 2024: Logistics Startups Banking On Infrastructure Push To Power Growth” https://lnkd.in/dMPkm_Fd #emizaimpact #logistics #supplychain #growth #letsbuildtogether #unionbudget2024 #supplychaintitans #letsbuildtogether #emizainnews
#Emizainnews - Inc42 Media’s article on “Budget 2024: Logistics Startups Banking On Infrastructure Push To Power Growth” features Mr.Ajay Rao Discussing his expectations on the upcoming Union Budget 2024, the article features views from our founder and CEO Mr. Ajay Rao- “The logistics sector would greatly benefit from enhanced connectivity of railways, roads, and ports. Prioritising infrastructural development can reduce logistic costs, improve supply chain efficiency, and foster economic growth by establishing robust and integrated transport networks”. Read the full article https://lnkd.in/dv5yWAvv #emizaimpact #logistics #supplychain #growth #letsbuildtogether #unionbudget2024 #supplychaintitans #letsbuildtogether
Budget 2024: Logistics Startups Pitch Infra Push To Power Growth
inc42.com
To view or add a comment, sign in
-
*Start-ups hope for growth in Budget 2024* Budgets are a tough balancing act. The expectations of the Indian start-up ecosystem are high as Finance Minister Nirmala Sitharaman is set to present her seventh consecutive Union Budget today—and the first of the Modi 3.0 government. While start-ups are looking forward to the launch of new schemes to boost domestic investments, many want the Budget to address other issues like corporate tax, Section 68 of the Income Tax Act, and redomicile taxation regimes. Sector expectations: - Indian universities should also be allowed to invest as trusts in start-ups beyond the incubator model, similar to the endowment funds of the US, to open other sources of investments, recommends Padmaja Ruparel, Co-founder of Indian Angel Network. - A longstanding ask from the ecosystem has been the parity of Long-Term Capital Gains and Short-Term Capital Gains taxes for listed securities and start-ups, which will aid talent retention at start-ups by doing away with dual taxation of stocks granted under ESOPs. - Earlier this month, the DPIIT under the Ministry of Commerce proposed the removal of ‘Angel Tax’ in a submission made to the finance minister. #startups #budget #budget2024 #startupecosystem #indianangelnetwork #unionbudget
To view or add a comment, sign in
-
For India to be be seen as a reliable partner by global majors, our logistics industry will need significant optimisation. The government is ready with enabling policies, the industry is ready for a transformation and startups are ready with disruptive technologies and business models. At Caret Capital, we see significant tailwinds in supporting startups optimising India's value chain. Pankaj Bansal, Prajakt Raut, Ritika Singh #supplychain #logistics #SupplychainVCfund #VCFund #Valuechain #talentmanagement #innovation #manufacturing #manufacturingefficiency #manufacturingtech #manufacturingtechnology #indianlogistics #indianmanufacturing
Is Indian logistics industry on the rise with government-led reforms and initiatives?
financialexpress.com
To view or add a comment, sign in
-
Highlights from the Union Budget 2024-25: Key Takeaways for the Startup Ecosystem Yesterday, our Honorable Finance Minister, Nirmala Sitharaman, unveiled the national budget for FY 2024-25. We’ve summarized the announcements and provisions that will significantly impact the startup ecosystem: 1. Angel Tax Abolished Investing in startups and MSMEs just got easier! The removal of the angel tax is a major win for early-stage ventures seeking investment. 2. Duty Reductions on High-Value Imports Significant reductions in duties on raw materials for manufacturing high-value items such as mobile phones, electronics, and pharmaceuticals. This move is expected to spur greater production activities, accelerating industrialization. 3. Increased Capital Gains Tax Slabs The capital gains tax rates have increased from 10% to 12.5% for long-term capital gains (LTCG) and from 15% to 20% for short-term capital gains (STCG). Additionally, the removal of the indexation benefit might prevent investors from chasing early exits, promoting longer-term investments in startups. 4. Reduced TDS on E-Commerce Companies The TDS on e-commerce companies has been reduced from 1% to 0.1%, allowing early-stage companies in this sector to retain more cash and improve their working capital cycle. 5. Support for the Space Economy The government has announced a 1,000 Crore venture fund for the development of the space economy. Additionally, a pool of 1 Lakh Crore has been allocated to develop research capacity for private sector space companies. There are numerous other sectors affected by the budget. We have captured our comprehensive thoughts in the attached document. We look forward to your thoughts on the budget and its impact on the startup ecosystem. #UnionBudget2025 #Startups #Tax #Investors
To view or add a comment, sign in
-
The UK logistics market has been experiencing remarkable growth in recent years, hitting over £400bn in market size in 2023, with a projection to grow another 6-10% in the period 2024-2032. This growth has been contributed to various factors including the expansion of e-commerce, technological advancements, and an increasing demand for sustainable logistics solutions. We take a look at the opportunities for growth in this space and how SMEs operating can take full advantage by innovating, adapting, and collaborating with the right strategies and focus. #sme #smes #smeloan #smelending #smefunding #smefinance #alternativelending #alternativeloans #businessloans #growth #logistics #transportation #transport #smecapital https://lnkd.in/ehcRCC-w
Keeping growth in the UK Transportation sector moving
insights.smecapital.com
To view or add a comment, sign in
-
Budget 2024 – Impact on Start Ups, MSMEs & Investors On July 23, 2024, Finance Minister Nirmala Sitharaman unveiled the budget for the financial year 2024-25. Several key announcements were focused on revolutionizing the Indian startup industry and MSMEs. 1. Abolition of Angel Tax: Introduced in 2012, the angel tax aimed to curb money laundering practices. Any unlisted company (typically startups) receiving investment above fair value had to treat the excess capital as 'income from other sources,' which would be subject to taxation. The abolition of this tax for all classes of investors will encourage investments in startups, thereby fostering innovation and growth, resulting in the simplification of investment structures. This move is truly beneficial for startups and is a clear indication of the government’s commitment to attract foreign capital in India. 2. Increase in Capital Gains Tax: Increase in Long Term Capital Gains tax from 10% to 12.5% on sale of certain assets and Short Term Capital Gains tax from 15% to 20% on certain financial assets may reduce net returns on investments. This change is likely to discourage investments in startups and may lead to the possibility of an increase in exits by early-stage investors. 3. Support for MSMEs: Various financial and regulatory changes to benefit MSMEs were introduced: a) Credit Guarantee Schemes, b) a new assessment model by public sector banks for MSMEs for credit, c) credit support during stress periods, d) opening of new SIDBI branches. 4. Development of a Digital Public Infrastructure - an initiative aimed to enhance productivity, create business opportunities, and stimulate innovation in the private sector across areas such as credit, e-commerce, health, law and justice, logistics, MSME service delivery, and urban governance. 5. Reduction in Corporate Tax Rates for Foreign Companies - from 40% to 35% and simplified rules for facilitating FDI inflows. These changes are expected to have a positive impact on Indian startups by making the business environment more attractive to foreign investors. The overall measures in this budget indicate a strong push towards fostering a favorable environment for startups, encouraging innovation, and supporting small businesses in India. ANB Legal Lara Borges Meghna Ponda #angeltax #startups #budget2024 #MSMEs #capitalgains
To view or add a comment, sign in
-
Abu Dhabi companies holding in-country value certificates awarded $12bn tenders in 2023 The value of the awards is nearly 17 times that of those in 2022 and reflects the strength of the industrial sector Tenders with local content value comprised nearly 52 per cent of the total those awarded by the Abu Dhabi Local Content Programme to ICV certificate-holding companies last year, compared to 41.2 per cent a year earlier, the department said. Those were able to channel more than Dh22.8 billion back into the local economy, boosting support for locally manufactured goods, advancing Emiratisation and promoting economic diversification, it said. The department said the tender figures mirror the success of the Abu Dhabi Industrial Strategy – the government's plan to more than double the size of the manufacturing sector to Dh172 billion, create 13,600 skilled jobs and increase non-oil exports by 143 per cent to Dh178.8 billion by 2031. The number of new industrial licences in Abu Dhabi jumped more than 51 per cent to 363 in 2023, from 240 a year earlier, representing a total investment of nearly Dh10.8 billion, the department said. The number of active factories in the emirate rose by nearly 12 per cent to 1,103, from 987 in 2022, with total capital investment hitting almost Dh374 billion, it said. The UAE's ICV programme, headed by the UAE Ministry of Industry and Advanced Technology, is part of the UAE's Projects of the 50 that aims to boost the growth of domestic industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031. The programme has expanded significantly since its launch and has supported the goals of the Make in the Emirates campaign, which was launched by the MoIAT to attract investments and promote sustainable industrial development in the UAE. The unified platform aims to consolidate the ICV certification process in a single ICV certificate that can be used by a supplier who intends to be part of the procurement process of participating entities, whether as a primary or secondary supplier. The ICV programme is also part of Operation 300bn, the UAE's strategy to position it as an industrial centre, focusing on increasing the industrial sector’s contribution to GDP to Dh300 billion by 2031. The UAE industrial sector’s contribution to gross domestic product reached about Dh197 billion in 2023, with the country achieving 30 per cent of Operation 300bn’s target since its 2021 launch, officials said in January. Ministry of Industry & Advanced Technology | وزارة الصناعة والتكنولوجيا المتقدمة Ministry of Human Resources and Emiratisation ADNOC Group ADNOC Distribution e& ADQ Mubadala PureHealth ADSB EDGE
Abu Dhabi companies holding in-country value certificates awarded $12bn tenders in 2023
thenationalnews.com
To view or add a comment, sign in
More from this author
-
How to Assess a Company’s Financial Health: The Role of Key Ratios in Investment Decisions
Vipul Gupta, CFA, CA 1w -
The Art of SaaS Evaluation: How to Analyze Growth, Metrics, and Profitability
Vipul Gupta, CFA, CA 1mo -
Understanding the Investment Philosophy of Warren Buffett and Charlie Munger
Vipul Gupta, CFA, CA 1mo
Chief Financial Officer at Mediterranean Shipping Company (UAE) LLC
5moVery informative and it’s a futuristic article