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    Pre-Budget Expectation – Logistic Sector – Quote on behalf of Shiprocket, Coldrush Logistics, Seros Logistics and Shipsy

    Published on January 31, 2022

    1- Shiprocket

    Spokesperson Details:- Mr. Saahil Goel (CEO & Co-founder of Shiprocket)

    “We have a lot of expectations of support to the start-up ecosystems which can really boost the economy. There should be a single window for all the relevant registrations like company incorporation, shop establishment, GST registration, MSME certificate etc. which will help save time, efforts, and money considerably. For start-ups, ESOP’s are key to attract & incentivize talent, these should not be taxed on vesting as recipients do not have ready cash in the hands at that point, the taxation should be on the final Sale of shares. Further, there is a deduction of TDS by the e-commerce operators on sale of goods, which leads to blockage of capital – that should be done away with.

    India’s Logistics cost are high. Steps towards Subsuming petroleum products under the GST regime have been under discussion for long; these will reduce fuel cost and progress needs to be made in that direction”

    2- Coldrush Logistics

    Spokesperson Details:- Mr. Kartik Shah, CEO, Coldrush logistics

    “The logistics industry is dealing with non-predictable fuel prices, and its non-inclusion in the GST regime is already making it hard for companies in this space. This sector also has a higher CAPEX cost, making the liquidity cycle more stringent for businesses. Currently, the processed food segment is growing rapidly and needs reefer transport. But the GST on fully built reefer vehicles is 18%; thus, reducing it would significantly encourage businesses to invest in it and thrive in their journeys. Similarly, extending the subsidy scheme on these vehicles would also be a step in the right direction and help players operate more seamlessly without any financial burden.

    Moreover, the central and state governments currently have huge unused land parcels at prime locations. These can be leveraged to create warehouses and cold storage. The government has also pushed for the use of solar in this sector. However, it is not viable for medium-level players like us. As a result, the government can incentivize this and explore other possibilities to make solar power duty-free for cold storage providers. This move will serve a bigger goal of reducing carbon footprints and building a sustainable ecosystem for businesses.”

    3- Seros Logistics

    Spokesperson Details:- Mr. Ashish Agarwal (Director & CEO at SEROS Logistics)

    India has been pushing for an auto-fuel transition with the twin objectives of containing emissions as well as diversifying away from India’s rising dependence on crude oil imports. In line with the Hon PM’s vision of a Gas based economy, we expect the government to induce a conducive environment for the development of Natural Gas as a fuel in the Automotive sector.

    A 5% GST rate for the sale and purchase of vehicles powered with LNG/CNG engines similar to EV can be levied in the same direction.

    The government could also look at amending the Motor Vehicle Regulations to issue BLUE registration plates for CNG/LNG powered commercial vehicles (similar to GREEN registration plates issued for EV) and BLUE plate registration would qualify for exemption of road tax and waiver in toll. This will promote the adoption of Gas-powered CVs

    Lastly, we are hoping there will be a reduction in import duty of LNG CVs as LNG powered vehicles are used globally and regarded as the most viable clean alternative to diesel for long haul trucking

    4- Shipsy

    Spokesperson Details:- Soham Chokshi, CEO, and Co-Founder, Shipsy.

    There is a growing need to make logistics sustainable. The government needs to build policies that ensure subsidies for using electric vehicles to execute delivery operations, especially in the last-mile. We are also witnessing a significant need for Indian businesses to leverage AI, Machine Learning, predictive analytics and more. Robust plans and investments must be made to empower the country’s youth to understand, manage and use these disruptive technologies. According to research, AI in the logistics and supply chain market is predicted to clock a CAGR of 42.9% by 2023, and it will reach USD 6.5 billion by then. The scope is massive.

    Another critical area that seeks greater attention is the export-import (EXIM) side of India’s supply chain operations. Currently, EXIM operations are riddled with silos creating challenges on freight procurement, shipment visibility, and customs operations. The government must build policies that will drive disparate EXIM stakeholders, like manufacturers, retailers, freight forwarders, shipping lines and more, to embrace a unified platform to execute, track and manage cross-border supply chain activities.

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