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Union Budget

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Budget Reaction - Mr Pirojshaw Sarkari, CEO, Mahindra Logistics

Posted On: 2017-02-01 21:19:19

"The recent budget has been extremely positive for logistics sector since it puts huge emphasis on infrastructure segments such as highways, railways, ports and aviation. Any expansion or enhancement of transportation infrastructure or even increase in consumption directly benefits the logistics sector.

The construction of PMGSY roads will be accelerated to 133 km per day in 2016-17, against an average of 73 km during 2011-2014. This will ensure expansion of logistics activities to the under penetrated rural areas nationwide.

For transportation sector as a whole, including rail, roads, shipping - a massive provision of Rs. 2,41,387 crore has been made in 2017-18. Better transportation infrastructure means lower logistics costs thereby making domestic manufacturing activity competitive in an increasingly competitive global marketplace.

The restructured scheme focused on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will provide further growth opportunities to the logistics sector.

To promote its flagship 'Make in India' scheme, the government has tweaked customs and central excise duty structure. We expect this move to benefit domestic manufacturing activity and lead to enhanced demand for logistics activity to support increased production and supply-chain needs.

The announcement of GST Council finalising its recommendations on almost all issues and timely preparation of IT system needs to be welcomed. In an endeavour to create awareness about the new GST led taxation system, we support the government's move to reach-out to trade and industry."


Source: Equity Bulls

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