While Arun Jaitely’s budget presented on Wednesday has grabbed attention on tax relief provided to the middle class and small and medium enterprises, in terms of sectoral focus, it has also provisioned for new initiatives for many sunrise sectors. The annual budget which for the first time in independent India also incorporated railways budget has also paved the way for greater cooperation between private logistics players and the railways.
“We will allow railways to partner with logistics players for front-end and back-end solutions for select commodities,” the finance minister said in his budget speech. The move is clearly aimed at arresting railways falling share in the freight business.
A major thrust on infrastructure allocation is also slated to benefit players in the logistics and supply chain businesses. The finance minister has provisioned for a staggering Rs. 3,96,000 crore allocation for the infrastructure sector out of which Rs 64,000 will be spent on the road construction.