Logistics and Supply Chain â€“ The Nervous System of a Growth Engine
Like every year, as we approach the end of February, the discussion on expectation from the Union Budget is an area of focus for all. However, this year is different with the Government under the leadership of Mr. Narendra Modi presenting its first full year Budget with lot more optimism all levels.
An effective Logistics and Supply Chain system is critical for an economy like nervous system in a human body. In this Budget, we expect;
- Clarity on the GST implementation road map to prepare for an efficient logistics solution for the manufacturers and traders.
- An appropriate tax system for rental costs which is currently subject to Service Tax and TDS at higher rates. Rent should be treated as return on investment and not as provision of services.
- Speedier implementation of investment planned in the Dedicated Railway Freight Corridors for more effective and pollution free transportation system.
- Tax incentives for investment in fuel efficient transportation equipment and setting up of new warehouses by higher tax deductible rate of depreciation.
- Drive the "Make in India" campaign by improving India's rank in the World Bank's 'Ease of Doing Business' index (Currently at 142 out of 189) and in the Transparency International's 'Corruption Perception' Index ( Currently at 85 out of 175) by setting benchmark targets for the same.
There is indeed a long way to go to complete the economic reforms agenda and baby steps will no longer work.