Budget 2025: Logistics industry seeks boost for shipping, ports, EV infra

Infrastructure investment has remained the key theme of the budget since 2021. It has served as a tool at the hands of the government to shield the economy from a slowdown in the wake of the pandemic and the geopolitical turmoil. Ahead of the budget 2025-26, logistics players in the country want the government capital expenditure to continue.

“The logistics sector is heavily dependent on infrastructure. The more the government spends on infrastructure, the better will it be for the logistics sector. Better roads, ports and railways will help us directly. For the logistics sector, any amount spent on infrastructure will have its benefit directly. It will be a clear-cut positive,” said Vineet Agarwal, managing director, Transport Corporation of India.

“The upcoming budget presents a pivotal opportunity to strengthen India’s logistics and supply chain sector, a backbone of economic growth and a key enabler of trade and commerce. By prioritising infrastructure investments across highways, expressways, multi-modal transport networks, and logistics parks, the government can catalyse sectoral transformation,” said Rampraveen Swaminathan, MD and CEO, Mahindra Logistics Ltd.

Agarwal called for more investments in dedicated freight corridors of railways and the shipping sector. “Capital expenditure in railways has to go up from the freight perspective as well, and not just the passenger. After the two corridors that have been done, what next?” said Agarwal.

Shipbuilding capacity is the next big thing India needs to tap, points out Agarwal. “There have been talks around shipbuilding and coastal shipping. The new shipping bill is also now in place. It will provide a major support. Today, I have to go abroad to buy ships. That capacity needs to be developed. It will take time, but the indications are good and trends are good,” he added.

Green adoption and EV infrastructure are some of the other key asks. “Accelerating automation, digitisation, and green logistics adoption—backed by advanced EV infrastructure—will foster efficiency and sustainability. Measures aimed at reducing logistics costs, enhancing skill development, and formalising gig economy employment through comprehensive regulatory frameworks will drive inclusivity and innovation,” said Swaminathan.

“To drive India's logistics sector toward global competitiveness, we urge the government to prioritise incentives that enhance global connectivity and enable seamless integration with international markets. Additionally, enforcement of targeted incentives for the warehousing sector will not only boost infrastructure development but also position India as a strategic hub for global trade,” Swaminathan added.

On the macro front, Agarwal said fiscal prudence needs to be adhered to otherwise it becomes inflationary which means one has to keep the interest rates higher. “To promote capital expenditure one needs to have some incentives around interest rates or tax rates. PLI is a good scheme but it focuses more on the larger companies. For the smaller companies the MSME ecosystem needs a lot of development,” he added.