February3 , 2026

    Union Budget 2026: Logistics Industry Calls for Infrastructure Push, Policy Simplification and Sustainability Focus

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    As India heads into the Union Budget 2026, leaders across the logistics, freight forwarding and supply chain ecosystem have outlined strong expectations around infrastructure-led growth, regulatory simplification and sustainability-driven policies to strengthen India’s global competitiveness.

    Emphasising the macroeconomic impact of logistics, Rizwan Soomar, CEO & Managing Director – MENA and India Subcontinent, DP World, said, “India’s economic growth over the next decade will be shaped by the strength and efficiency of its logistics backbone. Strategic Budgetary investments in port-led and multimodal connectivity—particularly rail-based freight corridors, inland terminals, logistics hubs and green infrastructure—will reduce trade costs, improve manufacturing productivity and accelerate GDP growth.”

    Soomar added that mobilising private capital and shifting freight from road to rail and waterways would be key to building “a competitive, sustainable and resilient manufacturing and trading hub.”

    On supply chain resilience and transparency, Smitha Shetty, Regional Director APAC, Achilles Information Limited, pointed to long-term structural reforms. “Reducing strategic dependence on a limited set of geographies will require thoughtful policy support that improves logistics, deepens domestic supplier ecosystems and builds long-term industrial capability,” she said.

    Shetty added, “Budget measures that support greater supply chain visibility, help MSMEs integrate into global value chains and invest in logistics and critical inputs can strengthen India’s global competitiveness while improving resilience and sustainability across the economy.”

    Gayomard Driver, Group CFO, Jeena & Company, emphasised the need for policy continuity and cost efficiency. “As India approaches the Union Budget, the freight forwarding and logistics sector looks for continued government focus on infrastructure-led growth, faster multimodal connectivity, rationalisation of GST and customs procedures, and policy support aligned with geopolitical supply-chain shifts—measures that can lower logistics costs, improve capital efficiency, and strengthen India’s competitiveness as a global trade and manufacturing hub,” he said.

    Driver added that sustainability and ease of doing business must remain central to policy thinking. “A sharper focus on sustainability, rationalising tax complexities, ease of doing business, targeted skill-development programmes, and accelerated technology adoption will not only strengthen logistics capabilities but also act as a critical enabler of long-term economic growth. A budget that strengthens infrastructure funding while simplifying regulatory frameworks will also create a more stable environment for private capital participation.”

    Highlighting the need to build on PM Gati Shakti, Dipanjan Banerjee, Chief Commercial Officer, Blue Dart, said the emphasis should now shift to execution and integration. “With the foundations of PM Gati Shakti firmly in place, the priority must move toward seamless physical and digital integration across air, road, rail and multimodal corridors. Reducing dwell times, simplifying customs and enabling smoother intermodal transfers can materially lower operating friction and bring logistics costs closer to global benchmarks—critical for India’s export ambitions,” he said.

    Banerjee also underlined the importance of enabling MSME exports and sustainable mobility. “Supportive policy measures that make cross-border e-commerce easier for MSMEs, digitise trade flows and streamline documentation can unlock significant B2C export potential from Tier 2 and Tier 3 markets. A calibrated push for cleaner mobility, including EV infrastructure and Sustainable Aviation Fuel, will be essential to future-proof logistics networks,” he added.

    Focusing on last-mile and rural logistics, Taranbir Singh, Founder and CEO, Bharat Supply, called for GST rationalisation and rural infrastructure investment. “As India’s consumption story deepens beyond metros, the Union Budget holds an opportunity to meaningfully strengthen last-mile and beyond-metro logistics. Simplifying and rationalising GST for logistics, particularly last-mile delivery services, can lower operating costs and unlock new private investment,” he said.

    Singh further noted, “Sustained investments in rural infrastructure, technology adoption and financial inclusion are critical if India is to bring logistics costs—currently at 14–16% of GDP—closer to global benchmarks.”

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