As India prepares for Budget 2026, industry leaders are highlighting the critical role that fiscal policy can play in transforming the nation's logistics landscape. Jossy Sebastian, Country General Manager for YCH India, believes the upcoming Budget can serve as a powerful catalyst by significantly scaling up investment in port connectivity and multimodal infrastructure.
Strengthening Logistics for Global Competitiveness
In an exclusive interview, Sebastian emphasized that as supply chains become increasingly central to manufacturing, exports, and consumption patterns, a well-calibrated Budget can drive substantial improvements in efficiency, job creation, and India's overall competitiveness on the global stage. "As manufacturing and exports expand, logistics infrastructure must keep pace with speed, reliability, and global standards," Sebastian noted, pointing to the growing importance of logistics efficiency in India's economic ambitions.
Key Budget Expectations for Logistics Sector
The logistics and supply chain sector has specific expectations from the upcoming Union Budget, building on recent momentum in infrastructure development. According to Sebastian, these expectations include:
- A meaningful increase in overall infrastructure allocation with strong focus on multimodal connectivity
- Enhanced investment in urban logistics and comprehensive warehousing ecosystems
- Support for digital logistics platforms and green supply chain initiatives
- Policies that improve access to financing for logistics infrastructure projects
- Encouragement of greater private sector participation in logistics development
Catalytic Investments for Export Growth
Sebastian identified several areas where Budget 2026 can make a transformative impact. Scaling up investment in port connectivity, dedicated freight corridors, and export-oriented logistics parks near production clusters represents a crucial priority. Additionally, strengthening cold chain infrastructure and specialized warehousing facilities is particularly critical for key sectors including electronics, pharmaceuticals, and agricultural exports.
The YCH India executive also highlighted the importance of simplifying customs procedures through deeper digitization and risk-based inspections, which can significantly reduce dwell times and improve turnaround efficiency at border points. Continued support for interest-free loans to states could help accelerate last-mile infrastructure development around industrial zones and ports, creating more integrated logistics ecosystems.
Accelerating Multi-Modal and Tech-Enabled Networks
India's logistics transformation will accelerate with stronger alignment between physical infrastructure creation and digital enablement. While continued investment in highways, rail freight corridors, ports, and inland waterways remains essential, Sebastian believes the next quantum leap will come from connecting these assets seamlessly through advanced technology.
Policy support for multimodal logistics parks, standardized digital documentation, and interoperable platforms such as the Unified Logistics Interface Platform can significantly reduce friction across warehousing, freight management, and last-mile delivery operations. Incentives for automation, warehouse modernization, and adoption of data-driven planning tools can help operators improve both efficiency and predictability in their supply chain operations.
Addressing Logistics Cost Challenges
Rising logistics costs remain a significant concern for many Indian industries. Sebastian suggests that reducing these costs requires a strategic mix of fiscal relief, regulatory simplification, and scale-driven infrastructure investments. Specific interventions could include:
- Rationalizing fuel taxes to manage transportation expenses
- Offering incentives for energy-efficient fleet operations
- Expanding access to green financing for sustainable logistics projects
- Implementing faster clearance processes and harmonized state-level compliances
- Wider adoption of single-window digital systems to reduce administrative delays
Greater budgetary focus on rail freight, coastal shipping, and inland waterways can also help rebalance modal dependence and reduce per-unit transport costs across the supply chain. "As India aims to compete globally, improving logistics efficiency will be as important as manufacturing competitiveness," Sebastian emphasized, particularly for time-sensitive and export-oriented industries that face intense international competition.
Building a Future-Ready Logistics Ecosystem
Equally important is the development of skilled talent, as tech-enabled logistics requires professionals who understand both operational complexities and digital systems. A focused push on cross-border logistics efficiency will not only support exporters but also enhance India's credibility as a long-term manufacturing and supply chain hub.
Sebastian concluded that a long-term, coordinated roadmap will be essential to translate infrastructure spending into measurable productivity gains. Together, physical infrastructure development and digital orchestration can shorten transit times, reduce operational costs, and make India's supply chains more resilient and globally competitive, positioning the nation for sustained economic growth in the coming years.
