Budget Sharpens Focus On Logistics With Rs 5,985.2 bn Outlay
WAREHOUSING & LOGISTICS

Budget Sharpens Focus On Logistics With Rs 5,985.2 bn Outlay

The Union Budget 2026-27 placed logistics and transport at the heart of India's growth strategy, allocating Rs 5,985.2 billion (bn) to the transport sector. The allocation is intended to improve freight efficiency, lower logistics costs and enhance export competitiveness through greener freight routes and faster clearances. The measures aim to support manufacturing-linked logistics and reduce supply-chain friction.

Key measures include new Dedicated Freight Corridors including the Dankuni-Surat corridor and the planned operationalisation of 20 National Waterways. The Budget proposed a Rs 100 billion (bn) container manufacturing scheme to boost domestic capacity and cut import dependence, while supporting smoother cargo movement across rail, road and water. The package emphasises multimodal integration and last-mile connectivity for remote and underserved regions.

Industry leaders broadly welcomed the measures as critical for strengthening supply chain reliability and global integration. A FedEx executive described the emphasis on infrastructure development, micro, small and medium enterprises and sectors such as biopharma, electronics, semiconductors and data centres as commendable and said reforms in digital logistics and multimodal infrastructure would improve predictability and reduce cycle times. A RapidShyp chief executive noted that the Rs 12,200 billion (bn) capital expenditure announced in the Budget underscored logistics' emergence as a national growth engine and highlighted reforms such as factory-to-ship electronic sealing and automatic customs notifications for trusted importers.

Other logistics stakeholders said operator-centric customs warehousing, electronic tracking and trusted-importer clearances alongside investments in freight corridors, coastal shipping and inland waterways would improve cargo velocity and enable lower-cost, lower-carbon networks. Executives suggested stronger east-west connectivity and energy-efficient waterways linking industrial hubs to major ports would ease bottlenecks and expand market access. The Budget was seen as reinforcing the Viksit Bharat road map through capital expenditure and policy reforms that aim to raise multimodal connectivity and cargo productivity.

The Union Budget 2026-27 placed logistics and transport at the heart of India's growth strategy, allocating Rs 5,985.2 billion (bn) to the transport sector. The allocation is intended to improve freight efficiency, lower logistics costs and enhance export competitiveness through greener freight routes and faster clearances. The measures aim to support manufacturing-linked logistics and reduce supply-chain friction. Key measures include new Dedicated Freight Corridors including the Dankuni-Surat corridor and the planned operationalisation of 20 National Waterways. The Budget proposed a Rs 100 billion (bn) container manufacturing scheme to boost domestic capacity and cut import dependence, while supporting smoother cargo movement across rail, road and water. The package emphasises multimodal integration and last-mile connectivity for remote and underserved regions. Industry leaders broadly welcomed the measures as critical for strengthening supply chain reliability and global integration. A FedEx executive described the emphasis on infrastructure development, micro, small and medium enterprises and sectors such as biopharma, electronics, semiconductors and data centres as commendable and said reforms in digital logistics and multimodal infrastructure would improve predictability and reduce cycle times. A RapidShyp chief executive noted that the Rs 12,200 billion (bn) capital expenditure announced in the Budget underscored logistics' emergence as a national growth engine and highlighted reforms such as factory-to-ship electronic sealing and automatic customs notifications for trusted importers. Other logistics stakeholders said operator-centric customs warehousing, electronic tracking and trusted-importer clearances alongside investments in freight corridors, coastal shipping and inland waterways would improve cargo velocity and enable lower-cost, lower-carbon networks. Executives suggested stronger east-west connectivity and energy-efficient waterways linking industrial hubs to major ports would ease bottlenecks and expand market access. The Budget was seen as reinforcing the Viksit Bharat road map through capital expenditure and policy reforms that aim to raise multimodal connectivity and cargo productivity.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement