Budget Reaction: Logistics Industry - Anjani Mandal, CEO, Fortigo Network
"The continuing growth and stability in the economy as reflected by the positive macroeconomic indicators will get a further boost with the infusion of capital in infrastructure, boosting MSMEs post-tax profits (owing to the reduced Income Tax) as well as increased liquidity with the consumer for his spends (owing to reduced Income Tax).
As to the Road Transportation industry, with the growth in economy, any facet of infrastructure development or investment by businesses or an increase in consumption, boosts Logistics sector growth.
There is no negative element for the Logistics segment and several positives to directly and indirectly boost the Logistics sector through, (a) higher outlay on Highways; (b) support for MSMEs through a reduced income tax and (c) boosting money in hands of individuals through lower income tax will boost consumption.
In addition to the above support to the overall Logistics segment, three factors are positive news for a start-up like Fortigo Network: (a) getting a wider set of businesses to move into the organized sector; (b) the continued focus on encouraging digital payments and support to infrastructure for build-up of digital payments and (c) GST to be implemented in the current year."