Abhik Mitra, MD & CEO, Spoton Logistics
As India Inc. sets sights on the Budget 2021-2022, I would like to draw the attention of the honourable finance minister towards a few key pain points of the logistics industry that must be addressed in this year’s budget. With logistics holding the economy together even during the COVID-19 pandemic and set to play an even more crucial role in current times, the government must look at providing the much-required financial and infrastructural support to the sector. With India’s aim to reduce the logistics cost from the current 14 per cent of GDP to less than 10 per cent, it is imperative for the government to bring about a groundbreaking transformation in the logistics sector that encapsulates an increased use of digital technologies and automation.
We urge the government to take dedicated measures to boost digitalisation so as to drive transparency and bring in the required predictability in logistics. Another key step that the government must take is to bring Fuel under the purview of GST as this could fundamentally transform the Indian logistics sector. While goods are moved from one place to another, it is generally required for the transporter to carry a hard copy of the invoice, the government must also do away with this by way of e-way bill digitalisation. On the demand side, the government can look at driving the overall consumption which could be achieved by reducing personal income tax and GST on various goods, etc.