As the Government of India prepares to unveil Budget 2025, industry leaders are calling for strategic investments in the logistics sector to support India’s trade ambitions, enhance economic efficiency, and empower small and medium enterprises (MSMEs). With an export target of $2 trillion by 2030, achieving the objectives outlined in the National Logistics Policy (NLP) will require bold policy measures, infrastructure expansion, and regulatory simplifications that foster a seamless trade ecosystem.

Gregory Goba Ble, Head of UPS India and Director of MOVIN Express, underscored the significance of logistics modernisation in realising India’s economic potential. “Investments in the logistics sector can support India’s trade goals, enhance economic efficiency, and encourage MSMEs to scale up,” he said, highlighting the need for budgetary allocations that prioritise efficiency and global integration.

A critical year 

The National Logistics Policy (NLP), launched in 2022, aims to reduce logistics costs from 13–14% of GDP to a global benchmark of 8%, streamlining trade and supply chains. However, achieving this goal requires sustained investment inmultimodal transport corridors, digital freight systems, and last-mile connectivity in emerging industrial zones.

Ble pointed out that simplifying export compliance procedures and reducing regulatory costs will be essential for logistics players to operate efficiently and remain competitive.
“To further strengthen India’s position in global markets, achieve the objective of the National Logistics Policy, and reach the export target of $2 trillion by 2030, the thrust should be to simplify export compliance procedures and reduce regulatory costs for logistics players,” he noted.

A more efficient regulatory framework, coupled with greater budgetary allocation for trade infrastructure, would enable seamless cross-border movement of goods while attracting global businesses looking for cost-effective supply chain solutions.

Empowering MSMEs

MSMEs form the backbone of India’s economy, contributing nearly 45% of total exports and 30% of GDP. However, a lack of access to advanced logistics infrastructure hinders their ability to scale operations and compete globally.

Recognising this challenge, previous budgets introduced several MSME support programmes, including credit schemes and digital transformation initiatives. The industry now hopes for further investments in capital access and technology adoption, particularly in Tier 2 and Tier 3 cities.

Goba Ble underscored this point by stating that, “In earlier budgets, the government announced programs and initiatives to support MSMEs, and we expect that to continue. We hope MSMEs, especially in Tier 2-3 cities, are further empowered with capital and technology adoption to compete in global markets.”

By developing regional logistics hubs and improving transport connectivity, the budget can unlock new growth avenues for MSMEs in emerging industrial and manufacturing centres.

e-commerce and cross-border trade

The rapid growth of e-commerce and cross-border online trade has created new opportunities for businesses, but also exposed regulatory and operational inefficiencies. While India’s e-commerce sector is projected to reach $350 billion by 2030, its success depends on faster clearances, improved last-mile connectivity, and a seamless digital payment ecosystem.

Ble emphasised the need for measures that expedite e-commerce clearances and simplify online international transactionsand emphasised that, “We hope to see measures to expedite e-commerce clearances and simplify cross-border online transactions.”

E-commerce exports have emerged as a key enabler for Indian MSMEs, allowing them to access global markets. However, for this to translate into sustained growth, the government must ensure faster, tech-driven clearance processes, particularly for small businesses navigating international trade for the first time.

Strengthening healthcare logistics

The healthcare and pharmaceutical industries are fundamentally dependent on a robust logistics network, particularly for time-sensitive shipments such as vaccines, critical medical supplies, and temperature-sensitive drugs. The COVID-19 pandemic exposed significant vulnerabilities in healthcare logistics, reinforcing the urgent need for resilient cold chain networks and specialised transport infrastructure. As India continues to expand its role as a global pharmaceutical hub, ensuring a seamless, efficient, and well-integrated logistics ecosystem will be critical to maintaining supply chain integrity and meeting both domestic and international demand.

Industry leaders have emphasised the necessity of increased budgetary allocations to enhance logistics capabilities within the healthcare sector. Ble highlighted this urgency, stating, “There needs to be increased budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure efficient delivery of medical supplies and increase the sector’s overall effectiveness to cater to pharmaceutical and patient requirements.”

A strategic approach to healthcare logistics investment should prioritise key areas to address existing challenges. Expanding cold storage and temperature-controlled logistics is essential to meet the increasing demand for life-saving drugs and biologics, ensuring that pharmaceutical products maintain their efficacy throughout transit. Additionally, streamlining customs clearance processes for medical imports and exports is necessary to prevent supply chain disruptions and ensure a predictable, uninterrupted flow of essential medical goods.

Furthermore, leveraging public-private partnerships (PPPs) could play a transformative role in strengthening last-mile delivery networks, particularly in rural and underserved areas. By fostering collaboration between government initiatives and private-sector expertise, logistics infrastructure can be expanded and modernised, ultimately improving accessibility and reducing delays in the distribution of critical healthcare supplies.

As India positions itself as a leader in global pharmaceutical manufacturing and exports, targeted investments in healthcare logistics will not only enhance supply chain efficiency but also reinforce the country’s capacity to respond effectively to public health challenges. The upcoming budget presents a pivotal opportunity to implement structural reforms and financial commitments that will shape the future of India’s healthcare logistics sector, ensuring resilience and reliability in an increasingly complex global landscape.

Policy recommendations

As the anticipation for Budget 2025 grows, industry stakeholders emphasize key areas that require urgent attention to bolster economic growth and development. A major priority is the investment in logistics infrastructure, particularly focusing on enhancing multimodal connectivity, advancing digitalization, and implementing regulatory reforms to effectively reduce trade costs. Such initiatives are expected to streamline the movement of goods and improve efficiency in the supply chain.

In parallel, experts advocate for stronger facilitation of e-commerce trade, with an emphasis on optimizing customs procedures to ensure smoother cross-border online transactions. By improving the digital framework and reducing bureaucratic hurdles, e-commerce can further expand, providing greater opportunities for businesses to reach global markets.

Healthcare logistics also stands out as a critical sector requiring dedicated attention. There is a call for targeted funding to enhance cold chain networks and streamline the supply chains for medical goods, ensuring timely and safe delivery of essential healthcare products.

Furthermore, there is a growing consensus on the need to support the digital transformation of Micro, Small, and Medium Enterprises (MSMEs), particularly in emerging industrial hubs in Tier 2 and Tier 3 cities. Financial backing and strategic digital initiatives can empower these businesses to grow and compete in the increasingly digital and global marketplace.

These recommendations reflect a holistic approach to nurturing economic resilience and ensuring that critical sectors receive the necessary resources to thrive in the coming years.

Pivotal budget

With India targeting $2 trillion in exports by 2030, the upcoming budget is expected to lay the groundwork for a modern, efficient, and globally competitive logistics sector. Strategic investments in multimodal connectivity, digital trade facilitation, and regional infrastructure will be key to unlocking economic growth and enhancing India’s trade efficiency.

Goba Ble’s insights reflect a broader industry consensus that supply chain efficiency and logistics modernisation will be crucial to achieving India’s economic ambitions. The government’s ability to address infrastructure gaps, streamline regulatory processes, and support MSMEs will determine how successfully India navigates its path towards becoming a global trade powerhouse.