As India readies for the Union Budget 2026, Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, has called for sustained policy support to unlock the next phase of growth in the country’s logistics and maritime ecosystem, positioning it as a key enabler of economic expansion.
Shetty said Budget 2026 comes at a “defining moment” as global trade dynamics shift, presenting India with an opportunity to emerge as a resilient economy backed by a robust, efficient and future-ready logistics network. He noted that flagship initiatives such as PM Gati Shakti, the National Logistics Policy, Sagarmala and Bharatmala have laid a strong foundation, and the next phase should focus on coordinated execution to scale capacity and competitiveness.
He highlighted the need to accelerate capacity creation across ports, drive industrialisation around coastal zones, enhance coastal and hinterland connectivity to global benchmarks, strengthen shipbuilding, and deepen digital adoption across the supply chain to support India’s trade ambitions.
Pointing to the development of deep-water ports, modernisation of port infrastructure and improved port-linked connectivity, Shetty said these measures are laying the groundwork for India to emerge as a global transshipment hub. He added that Budget 2026 could reinforce this momentum through low-cost, long-term financing, sharper tax incentives and a fast-track approvals framework to attract private investment.
Shetty also underscored the importance of strengthening production-linked incentives and tax benefits for MSMEs to promote port-centric manufacturing and logistics, noting that indigenous manufacturing in coastal zones could significantly boost exports.
On shipbuilding, he said the sector warrants continued focus following the ₹69,725-crore maritime package announced in 2025. While existing schemes have provided policy support, he suggested that Budget 2026 should prioritise skill development and R&D centres through international partnerships and private participation.
He further called for continued support for logistics digitisation, especially secure integration of public system databases with enterprise data, to enhance efficiency and transparency.
Overall, Shetty said the logistics industry expects Budget 2026 to maintain a strong focus on incentivising private participation in infrastructure, capacity building, digitisation, skill development and sustainability, enabling the sector to support India’s journey towards Viksit Bharat 2047 with scale, resilience and global relevance.
