Budget Sharpens Focus On Logistics With Rs 5.98 Lakh Crore Transport Outlay

The Union Budget 2026–27 has placed logistics and transport at the heart of India’s growth strategy, with Finance Minister Nirmala Sitharaman allocating Rs 5,98,520 crore to the transport sector. The outlay is aimed at improving freight efficiency, lowering logistics costs and enhancing India’s export competitiveness, with a strong emphasis on greener freight routes, faster clearances and manufacturing-linked logistics.

Freight corridors, waterways and containers in focus
Among the key announcements are new Dedicated Freight Corridors (DFCs), including the Dankuni–Surat corridor, and the operationalisation of 20 National Waterways in the coming years. The Budget also proposes a Rs 10,000 crore container manufacturing scheme to boost domestic capacity and reduce import dependence, supporting smoother cargo movement across rail, road and water.

Industry welcomes push for trade facilitation
Industry leaders broadly welcomed the measures, calling them critical for strengthening supply chain reliability. Kami Viswanthan, President, Middle East, Indian Subcontinent and Africa (MEISA) at FedEx, said the continued focus on infrastructure development, MSMEs and sectors such as biopharma, electronics, semiconductors and data centres was “commendable”. He added that reforms in digital logistics, multimodal infrastructure and courier-led exports would improve predictability, reduce cycle times and further integrate Indian businesses into global supply chains.

Digital reforms to cut dwell time and costs
Ravi Goel, CEO of RapidShyp, said the Rs 12.2 lakh crore capital expenditure announced in Budget 2026 underscored logistics’ emergence as a national growth engine. He highlighted reforms such as factory-to-ship clearance via electronic sealing and automatic customs notifications for trusted importers as “game-changers” that could sharply reduce dwell times and working-capital stress for logistics players.

Integrated infrastructure to boost manufacturing competitiveness
Anshuman Singh, MD & CEO of IndoSpace and Co-Chairman of the FICCI Committee on Logistics, said the Budget signalled a more integrated approach to industrial competitiveness. Measures such as operator-centric customs warehousing, electronic tracking and trusted-importer clearances, alongside sustained investments in freight corridors, coastal shipping and inland waterways, would improve cargo velocity while enabling lower-cost and lower-carbon logistics networks.

“Stronger East–West connectivity can ease supply-chain bottlenecks and speed up delivery for manufacturing, agriculture and exports. Expanding freight corridors and inland waterways will reduce reliance on road transport, cut emissions and lower costs. Energy-efficient waterways linking industrial hubs like Talcher and Angul to ports such as Paradip and Dhamra can strengthen multimodal logistics and global market access,” said Ajay Mokariya, Managing Director, Shree Maruti Integrated Logistics (SMILe).

Capex push strengthens Viksit Bharat roadmap
Shashi Kiran Shetty, Founder and Chairman of the Allcargo Group, said the Budget provided a forward-looking macro framework aligned with India’s Viksit Bharat vision. He noted that initiatives such as new national waterways, coastal cargo schemes and the proposed East–West DFC would significantly enhance multimodal connectivity and cargo productivity.

Ketan Kulkarni, Managing Director & Chief Executive Officer, Allcargo Logistics, said Budget 2026 offers a timely and strategic response to a rapidly evolving global trade and supply chain environment. He noted that the strong focus on multimodal infrastructure—spanning new freight corridors, inland waterways, coastal shipping and last-mile connectivity for remote and underserved regions—will be critical in improving logistics efficiency and reducing overall costs.