India’s logistics sector, a critical pillar of economic growth, is set for a transformative shift with the upcoming Union Budget 2025. The industry, projected to reach $557.4 billion by 2032, is focusing on reducing logistics costs from the current 14%-18% of GDP to a more competitive range, aligning with global standards of 8%-10%.
Industry leaders believe that this budget could be a turning point, addressing key areas such as sustainability, multimodal connectivity, digital transformation, and skill development. Among these, green mobility has emerged as a top priority.
Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, underscores the importance of EV adoption and charging infrastructure to create an environmentally sustainable logistics network. He advocates for incentives to boost domestic EV manufacturing and drive India’s clean energy transition. “Green mobility and clean energy transition are crucial for achieving net-zero emissions by 2070,” he asserts.
Vineet Agarwal, Managing Director of TCI Ltd., echoes this, emphasizing the need for commercial EV adoption and investments in charging infrastructure along major routes. With the right budgetary allocations, India’s logistics sector could emerge as a globally competitive, sustainable powerhouse, driving economic growth and environmental responsibility.
