As the Union Budget 2024 approaches, industry leaders are voicing their expectations and insights, hoping to shape policies that will further bolster India’s economic growth. One such voice is R.S. Subramanian, Senior Vice President & Managing Director of DHL Express India. Subramanian’s pre-budget statement highlights the critical areas where government intervention can enhance the logistics sector and contribute to India’s ambitious economic goals.
Boosting India’s economic ambitions
“India is one of the world’s fastest-growing economies, with a bold ambition to achieve a US$5 trillion economy by Amrit Kaal 2047,” begins Subramanian. This statement underscores the country’s significant economic progress and its vision for the future. To achieve this goal, the government’s focus on enhancing exports, e-commerce, and manufacturing is crucial.
The introduction of the National Logistics Policy and the Gati Shakti initiative are seen as pivotal steps in laying a robust foundation for India’s economic development over the next decade. These policies aim to streamline logistics, improve infrastructure, and enhance the efficiency of the supply chain, which are all essential for sustaining economic growth.
Enhancing ease of doing business
Subramanian emphasises the need for further improvements in the ease of doing business. “There is significant scope to improve the ease of doing business by streamlining regulations and adopting digital processes,” he notes. Simplifying and ensuring consistency in GST administration is a key area that requires attention. Businesses often face challenges due to varying interpretations of GST laws across different states, leading to compliance complexities and increased costs.
In addition, greater clarity and standardization in customs procedures can significantly reduce delays and improve the efficiency of international trade. Subramanian points out that clear and consistent TDS (Tax Deducted at Source) regulations are also essential for creating a more predictable business environment.
Importance of consultative policymaking
One of the commendable aspects of the current government’s approach is its consultative nature in policymaking. Subramanian appreciates this and urges continued collaboration between the government, logistics providers, and MSMEs (Micro, Small, and Medium Enterprises). “We commend the government’s consultative approach to policymaking and urge continued collaboration with logistics providers and MSMEs,” he states.
Such collaboration is vital for refining export schemes, establishing dedicated e-commerce export hubs, and reducing logistics costs. By working together, stakeholders can ensure that policies are practical, effective, and beneficial to all parties involved.
Digitalisation and standardisation
Adopting digital processes is another critical area highlighted by Subramanian. Digitalization can streamline various regulatory procedures, making them more efficient and less time-consuming. This, in turn, can lead to significant cost savings for businesses and improve their overall competitiveness.
Furthermore, standardisation across various regulatory frameworks can eliminate ambiguities and provide a clear roadmap for businesses to follow. This is particularly important for customs procedures, where inconsistencies can lead to delays and increased operational costs.
Ultimately, the goal of these efforts is to enhance India’s business environment, making it more conducive to growth and innovation. Subramanian concludes, “Ultimately, these efforts will enhance India’s business environment.” By addressing the key areas of regulation, digitalization, and collaboration, India can create a more dynamic and competitive economic landscape.
As India marches towards its goal of becoming a USD 5 trillion economy by 2047, the upcoming Union Budget 2024 presents an opportunity to implement reforms that can drive this vision forward. The insights from R.S. Subramanian of DHL Express India provide a clear roadmap for how targeted interventions can significantly enhance the logistics sector and, by extension, the broader economy. By focusing on ease of doing business, digitalization, and collaborative policymaking, India can create a robust foundation for sustained economic growth and global competitiveness.
