Budget Expectation Comment on Logistics & Infrastructure Industry by Mr. Shashi Kiran Shetty, Founder & Chairman, Allcargo Group
Below the Budget Expectation Comment on Logistics & Infrastructure Industry by Mr. Shashi Kiran Shetty, Founder & Chairman, Allcargo Group
"Budget 2026 arrives at a defining moment for India’s logistics and maritime sectors, which can be the key enabler for economic growth. With global trade dynamics evolving rapidly, India has a unique opportunity to position itself as a resilient economy supported by a robust, efficient, and future-ready logistics ecosystem.
Earlier initiatives such as PM Gati Shakti, National Logistics Policy, Sagarmala and Bharatmala, through a well-coordinated execution, have set the foundation to catapult the logistics industry in India. The next phase could focus on accelerating capacity creation across ports, industrialisation around coastal zones, improving coastal and hinterland connectivity at par with developed nations, and an evolved shipbuilding industry while deepening digital adoption across the supply chain, to support India’s trade ambitions.
Development of deep-water ports, modernisation of port infrastructure, and strengthened port-linked connectivity are laying the foundation for India’s positioning as a global transshipment hub. Budget 2026 can further build on the momentum by introducing low-cost and long term financing, sharpening tax incentives and fast-track approval system to support private investors.
It would also be important to strengthen production-based incentives (PLIs) as well as tax incentives for MSMEs, to promote port-centric manufacturing and logistics activities. Further, indigenous manufacturing in coastal zones would aid in improving export trade from the country, and that is an area which this budget could target to incentivise.
Shipbuilding merits sustained attention, especially following the announcement of the ?69,725 crore maritime package in 2025 to boost domestic shipbuilding capacity. While the government has already introduced policy measures such as Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme, Budget 2026 could look at incentivising and fast-tracking the establishment of skill development centres and R&D centres, through international partnerships and private participation.
Budget 2026 could continue to support digitisation of logistics, as the industry would benefit immensely if public systems databases are integrated securely with organisational data.
Overall, the logistics industry expects Budget 2026 to continue the focus on incentivising private participation in infrastructure creation, capacity building, digitisation, skill development, and sustainability - empowering the sector to support the journey toward Viksit Bharat 2047 with scale, resilience, and global relevance."
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