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Union Budget 2025-26: Key Highlights for the Logistics Industry

The Union Budget 2025-26, announced in February, brings several reforms and incentives aimed at boosting the logistics sector. These initiatives aim to build a faster, greener, and more integrated supply chain network across the country.

  • Continued focus on the PM Gati Shakti plan to strengthen multi-modal connectivity.
  • Push for digital infrastructure like geospatial land records for faster land acquisition.
  • Launch of Bharat Trade Net, a single-window platform to simplify trade across India.
  • Creation of a ₹250 billion Maritime Development Fund for shipbuilding and repair (49% govt-funded).
  • Plans to upgrade air cargo infrastructure and enhance India Post as a last-mile logistics leader.
  • MSME credit guarantee cover increased from ₹5 crore to ₹10 crore.
  • MSME investment limits raised by 2.5 times.
  • Tax rebates and funding for logistics players using green hydrogen trucks and ethanol-blended fuels.
  • Capital subsidies and tax incentives for solar-powered logistics hubs and warehouses.
  • PM e-Drive Scheme extended till March 31, 2026 – ₹5,000/kWh battery subsidy (up to ₹10,000/vehicle).

These moves reflect the government’s continued push towards sustainable growth in the logistics sector. The industry stands to benefit from both infrastructure upgrades and clean energy incentives.

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