Logistics and Telematics are booming industries in India. In recent years, the sector has witnessed exponential growth. It has helped many people to generate better income and create employment opportunities. The industry has massively contributed to the Indian economy.
One of the major reasons for the boom in Logistics in our country is the addition of telematics. It has made it possible to carry out operations efficiently. The era of digitalized fleet operations enables managers to control and coordinate various aspects of fleet management.
Our country spends the highest portion of the budget on logistics as compared to many countries. India has an approx budget cap of 12 to 14 per cent of our GDP for logistics.
The budget for 2022 was crucial for the logistics sector. India is ready to unfold the hidden potentials of logistics in our country. Read some of the key highlights of the budget for 2022 for logistics and Telematics.
Highlights in Union Budget 2022 for Logistics and Telematics
The Union budget of 2022 had many gifts for the logistics sector.
The government came up with a systematic plan to unleash the growth of telematics while promoting nature-friendly options.
India is aiming to create a 5 trillion economy by investing in Logistics in a systematic way.
The main highlights in Union Budget 2022 for Logistics and Telematics are-
The PM Gati Shakti National Master Plan
One of the major inclusion this time was the PM Gati Shakti National Master Plan introduced by the finance minister, ensuring sustainable development and advancement in logistics.
The finance minister also paid attention to the growth in the economy by the unfolding of this plan.
There plan will unfold by giving equal importance to the 7 models that are incorporated into the plan. These 7 models or parts of the plan are-
- Mass Transport
- Logistics infrastructure
The government aims at working on all these lines to create an economy based on logistics in our country.
The end goal is to make logistics more efficient and rewarding by creating systems that are smooth and easier for the execution of logistical work.
The government is set to invest a large sum of money to make logistics more practical and efficient.
The government also emphasised that they will pay close attention to the advancement in technology so that a better module can be prepared for the efficient Logistic and management of fleets.
The government is aiming to create a Unified Logistics Interface Platform that will serve as a single road to unify both technological growth and logistics growth in our country.
The Unified Logistics Interface Platform will also ease the process of trekking goods and other services for the customers or the stakeholders. There will be more partiallity and clear data irrespective of the mode of transportation.
With the introduction of blockchain technology, it is possible to transmit and store real-time data with high security and speed enabling more secure logistics operations.
The next big announcement under the Gati Shakti National Master Plan is to provide better connectivity of roads throughout the country.
This includes both new roads and quality enhancement of the previous highways and linking roads.
High-quality roads with better connectivity throughout the country will make it possible for companies to reach each and every corner of the country. It will also save a lot of time and travelling to remote areas will be more secure.
A budget of around twenty thousand crores is allocated by the government to expand the national highway to twenty-five thousand kilometres by the year 2023.
To provide an elaborate network of connectivity the government is aiming at an all-around approach by expanding the Indian railways simultaneously.
The Indian Railways play an important role in carrying large goods throughout the country. Heavy weight and mass goods are carried through the railway cargos.
The government will invest to introduce more than 500 cargo terminals in the next working year.
Apart from cargo, the introduction of more than 400 Vande Bharat trains will set up the pace for achieving better logistics and connectivity in the country.
More use of Electronic vehicles
At present major fleets are run on fossil fuels. Fossil fuels like petro and diesel are present in a limited amount inside the earth’s surface and soon we will run out of them.
Another problem that fossil fuels create is the huge carbon emission leading to global warming and pollution.
The whole planet is facing a crisis and climate change is becoming a real phenomenon. In regard to dealing with problems like these, the government is working to curb the annual carbon emissions.
The inclusion of electronic fleets will change the way we look at logistics and the incorporation of telematics will make it more efficient.
The finance minister said that we will allow more investment in electronic vehicles making India a clean fuel country.
Inclusion of Drones
The budget for 2022 also paid attention to advanced technology and AI-powered drones. These drones are set to change the way we look at logistics in India.
According to the government, the drone shakti mission is a large scale project that will create a $5 billion economy in the country.
The inclusion of drones into the future of logistics in the country will bring many revolutionary changes. This will make delivering items and services in various areas faster and more efficient. Sending help and products in case of natural calamities or other problems will be easier.
Logistics will improve significantly and telematics will make it possible to establish connectivity throughout the country. It is a beginning of a new era in Indian logistics and telematics.
Availability of 5G network
The advancement in logistics and telematics requires the support of higher connectivity throughout the devices. The 5G network will make it possible to transfer loads of data within seconds.
Controlling remote devices and receiving data through a 5G medium will be fast, and accurate and make it an easy task to rely on the network for major fleet operations. The government made it clear that India will have 5G services by 2023.
Many rural areas of our country are still deprived of good internet connectivity. The government is ready to connect rural and backward parts of the country with broadband services.
This will create a platform for logistics and telematics companies to explore unexplored lands. A huge opportunity and market stand tall in front of Indian logistics and telematics.
Advancement in Telematics
Telematics is one of the key components of logistics in the present case scenario. It has made it possible to increase execution process efficiency.
Manager’s can control and aid the drivers on the run with the help of telematics.
The data helps companies to plan in advance and create a better module for higher profitable returns.
The budget for 2022 made it clear that there will be a significant investment in telematics from the government.
Advancements in telematics and higher research will be beneficial for fleets. The logistics sector is going to boom at a rapid speed with the government aiming at more and more capitalization of the sector.
Summing it up!
The budget for 2022 was a gift for telematics and logistics in our country.
The government is working hand in hand with major logistics players of the country to promote sustainable development while creating better economic opportunities in logistics.
Simultaneous a keen interest in telematics ensures that operating fleets and managing logistics operations will get more streamlined in the future. It involves higher efficiency, low-cost investment and much more.
Good road connectivity and more railway lines will lay the platform for Indian logistics to reach each and every part of the country.
This maximizes the market and creates a never like before opportunity for players to earn and thrive in the sector.