“For the upcoming Union Budget 2026, we anticipate targeted policy support to strengthen India’s logistics and supply chain ecosystem, including incentives for technology adoption, expedited clearances for warehousing projects, and subsidies for dark stores and last-mile delivery infrastructure.
India’s logistics sector is on a strong growth trajectory, with the market projected to reach ₹13.4 trillion by FY28 at a CAGR of ~8–9%, driven by digitalisation and infrastructure upgrades. A broader industry outlook suggests that the sector could nearly triple to ₹120 trillion by 2035 with continued reforms and investment.
In the Union Budget 2025-26, initiatives such as facilitating digital logistics data platforms, supporting air cargo and warehousing infrastructure, and enhancing access to logistics information were introduced to boost efficiency. However, modern logistics firms still face challenges around regulatory clarity, fragmented land and warehousing approvals, and high operating costs.
For Budget 2026, Edgistify hopes to see tax incentives for technology-driven supply chain solutions, streamlined approvals for warehousing and logistics parks, and support for hyper-local delivery infrastructure. In addition to these reforms, the government can provide GST relaxation for Warehousing and APOB to simplify multi-state operations. Furthermore, the TDS rate, which is currently 2% for many logistics service providers under section 194C, can be reduced to improve liquidity and cash flow in the industry. These reforms will accelerate formalisation, lower costs, and strengthen India’s position as a global logistics hub.”
