India's ambition of achieving a USD 7 trillion economy by 2030 is intrinsically linked to strategic, long-term infrastructure development. The Union Budget 2025's emphasis on this sector is therefore crucial.
Currently, India's logistics costs are estimated at 13%–14% of GDP, significantly higher than the global average of around 8%. Efficient logistics, improved connectivity (including digital infrastructure), and modernized infrastructure can significantly reduce these costs, creating a more competitive business environment.
This is especially important if we want to break into the Top 25 of the World Bank’s Global Logistics Performance Index. For MSMEs, which contribute approximately 30% to India's GDP and account for roughly 40% of exports, this translates to reduced operational costs, improved supply chain efficiency, and access to wider markets, both domestic and international.
For example, improved road and rail networks can reduce transportation time and costs for MSMEs involved in manufacturing and agriculture, while enhanced digital connectivity can facilitate their participation in e-commerce and global value chains. These improvements enable them to contribute more effectively to national economic growth and job creation."
.png)
