The Union Budget for FY 2025-26 introduces a strategic roadmap to strengthen India's internal supply chain, focusing on infrastructure expansion, logistics efficiency, technological advancements, sustainability and MSME growth. These initiatives aim to streamline goods movement across the country to reduce costs and integrate domestic
businesses more effectively into global supply chains. Below is a detailed breakdown of the key reforms and their impact on India’s internal supply chain.
To improve logistics efficiency and reduce transportation costs, the budget has allocated ₹1.5 trillion in interest-free loans to state governments. These funds are specifically earmarked for:
These investments are expected to streamline domestic supply chains, reduce fuel costs and enhance the overall ease of doing business.
To encourage scalability and integration into domestic and global supply chains, the budget introduces updated classification criteria for Micro, Small and Medium Enterprises (MSMEs).
This move is particularly beneficial for manufacturers, warehousing providers and last-mile logistics startups, ensuring that smaller players have a more active role in India's internal supply chain.
A new export promotion mission has been launched to support MSMEs and larger enterprises in competing in international markets by:
This initiative aims to bridge domestic supply chains with international trade by ensuring that products manufactured in India reach global markets efficiently and cost-effectively.
a. Bharat Trade Net Platform for Digital Supply Chain Management.
The government is rolling out the Bharat Trade Net Platform, a unified digital platform designed to:
b. Geospatial Land Records for Smarter Infrastructure Planning.
These advancements will significantly improve supply chain visibility, reduce transit delays and minimize supply chain disruptions caused by poor infrastructure planning.
With these measures, India's automotive supply chain is expected to become more resilient, self-sufficient and globally competitive.
6. Environmental Sustainability and Green Logistics:
Recognizing the need for sustainable supply chain practices, the budget introduces:
These initiatives aim to reduce the logistics sector's carbon emissions, align India’s supply chain with global sustainability goals and lower energy costs for transport and warehousing businesses.
At iKargos, we are aligned with the government's vision for a more efficient and technology-driven logistics sector. Our AI-powered international logistics platform helps businesses streamline supply chain operations by providing real-time tracking, automated documentation, and seamless coordination between transport modes.
With our newly introduced KYC feature, we ensure compliance and security for customers, transporters, and drivers. Additionally, our distribution services in India empower businesses to leverage the improved infrastructure and reduced logistics costs highlighted in this budget. As India moves towards a more integrated and digital supply chain, iKargos remains committed to delivering smart, sustainable, and cost-effective logistics solutions.
The Union Budget 2025-26 lays out a comprehensive strategy to modernize and strengthen India's internal supply chain infrastructure. Through massive investments in logistics, digital transformation, MSME support and sustainability, the government is setting the stage for a more efficient, competitive, and future-ready supply chain ecosystem. These reforms will drive economic growth, reduce logistics costs, improve last-mile connectivity and enhance India's role in global trade.
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