Budget Expectations 2023
The Indian government’s focus on improving infrastructure and streamlining logistics operations through initiatives such as the National Logistics Portal and the National Supply Chain Management System has the potential to make India a more attractive destination for businesses and investors. This can help to position India as a strong alternative to China in the global supply chain.
The biggest impetus should be given to creating an improved ecosystem for the digital supply chains of the future. This ultimately will improve the efficiency and competitiveness of the Indian economy, enabling businesses to take advantage of new technologies to improve efficiency, reduce costs, and increase competitiveness. Specifically, digitizing manual processes, such as using digital forms and software to track and manage inventory, can help to reduce logistics costs. And by automating processes, companies can reduce the need for manual labour, which can lower costs and improve efficiency. Additionally, digital systems can provide real-time data and analytics, which can help companies make more informed decisions about logistics and supply chain management.
The government should take steps to support this ecosystem, including investing in digital infrastructure, encouraging the adoption of digital technologies, developing digital skills, creating a supportive regulatory environment, and promoting collaboration and innovation.
Further, by implementing these initiatives, India will be better positioned to improve the efficiency of its supply chain and reduce the time and cost of moving goods across the country as well as in/out of the country.
As per today, it is likely that the Indian government will continue to focus on improving infrastructure and streamlining logistics operations in the 2023 budget. This could include increased investment in the development of ports, roads, and rail networks, as well as funding for initiatives such as the National Logistics Portal and the National Supply Chain Management System. Additionally, the government may also consider providing tax incentives or subsidies for businesses that invest in logistics and supply chain infrastructure and technology.
Overall, the 2023 budget should act as a bridge between policy and execution, providing the necessary funding and support to improve logistics infrastructure and operations, while also ensuring that these efforts are effectively implemented and monitored.