+
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.

Next Story
Infrastructure Transport

Tamil Nadu Gets Rs 76,110 mn for Railways, Three Projects Revived

Union Minister for Railways Ashwini Vaishnaw announced that Tamil Nadu has been allocated Rs 76,110 mn in the Union Budget 2026–27, marking a 14.9 per cent increase over the Rs 66,260 mn allotted in 2025–26. The allocation is intended for ongoing new line projects, track doubling, station redevelopment and safety-related works, with project-wise details to be disclosed when the Pink Book is released. Officials indicated that the funds will be deployed across construction and modernisation priorities identified for the state. The minister urged the Tamil Nadu government to extend support f..

Next Story
Infrastructure Transport

Nagpur Station Redevelopment Deadline Extended To March 2027

Nagpur Railway Station redevelopment has been rescheduled to March 2027 as officials opted for a cautious approach to minimise disruption at the busy terminus. The project had earlier been due for completion in December 2026 but work at a live station while preserving the heritage character of the building has slowed progress. The Divisional Railway Manager (DRM) said construction sequencing is being adjusted to maintain passenger services. The DRM provided an update on Ajni Railway Station, stating its redevelopment timeline has been revised to October 2026 instead of the earlier target of c..

Next Story
Infrastructure Transport

Railway Push Boosts Connectivity in Jammu and Kashmir

An accelerated push to expand railway infrastructure is reshaping connectivity in Jammu and Kashmir, with Indian Railways leading an extensive programme of new lines, stations and engineering works. Officials described the effort as aimed at linking remote areas to major trade and transport corridors and at reducing travel time for passengers and freight. The programme incorporates complex tunnelling and bridge construction to negotiate challenging terrain and to provide year round access. Administrative sources indicated that coordination with central and local agencies has been intensified t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App