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

10 Feb 2026 CW Team

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.

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