By Jitendra Srivastava
Here’s the thing. Budgets usually talk about growth in abstractions. This one speaks the language of movement. Cargo. Corridors. Time. Cost.
Union Budget 2026–27 sends a clear signal that India’s export ambitions will be carried not just by policy intent, but by logistics capability. For those of us working at the intersection of trade and supply chains, this is a budget that finally treats logistics as infrastructure for competitiveness, not just a support function.
Infrastructure That Actually Connects Exports to Markets
The headline number matters. Public capital expenditure rising to ₹12.2 lakh crore reinforces continuity in infrastructure building. But what matters more is where this money is going.
The announcement of a new Dedicated Freight Corridor linking Dankuni in the East to Surat in the West is strategically significant. This corridor stitches together industrial belts, ports, and consumption centres across two critical coasts. For exporters, this means fewer bottlenecks between factory gates and port terminals, more predictable transit times, and lower inventory holding costs.
Equally important is the operationalisation of 20 new National Waterways connecting mineral-rich regions, industrial hubs, and ports. Inland waterways and coastal shipping have long been India’s underutilised advantage. The launch of a Coastal Cargo Promotion Scheme aimed at doubling modal share from 6 percent to 12 percent by 2047 is not symbolic. It is structural. It directly improves export competitiveness for bulk, project, and energy cargo where cost per tonne decides global viability.
Building a Domestic Container and Maritime Ecosystem
India’s export growth cannot depend indefinitely on imported containers, ship repair overseas, and fragmented maritime services. The ₹10,000 crore Container Manufacturing Scheme is a timely intervention to build resilience into the EXIM ecosystem. For exporters, container availability and pricing volatility are not theoretical risks. They impact contracts, delivery commitments, and margins.
Complementing this is the focus on developing a ship repair ecosystem for inland waterways and coastal fleets. This reduces turnaround time, foreign exchange outflow, and operational downtime. The Seaplane VGF Scheme, while often viewed through a tourism lens, also signals intent to indigenise niche maritime and aviation manufacturing capabilities that strengthen auxiliary logistics infrastructure.
Chemical, Industrial, and Energy Cargo Get a Clear Signal
Exports are increasingly driven by chemicals, specialty materials, and energy-intensive manufacturing. The announcement of three new dedicated Chemical Parks acknowledges this reality. These parks will generate cargo that requires specialised storage, handling, and compliance-driven logistics. This is not volume logistics. It is precision logistics.
The ₹20,000 crore CCUS programme for energy-intensive sectors adds another layer. As global buyers tighten carbon compliance, exporters will need logistics partners who understand traceability, documentation, and emissions-linked reporting. This budget implicitly recognises that logistics will play a role in India’s ESG-aligned export growth, not just manufacturing.
Customs Reform Where It Matters Most: Time
Infrastructure builds capacity. Customs reform unlocks it.
The extension of the 30-day duty deferral facility to Tier-II and Tier-III AEOs is one of the most practical export-enabling measures in this budget. It improves cash flow, reduces working capital stress, and encourages more exporters to enter trusted trade frameworks.
Enhanced recognition of trusted importers and exporters within the risk management system will directly reduce dwell time at ports and ICDs. In global trade, reliability is currency. Faster, predictable clearance improves India’s credibility with overseas buyers far more than tariff incentives alone.
MSMEs, Clusters, and the Export Multiplier
Exports do not grow only from large conglomerates. They grow from clusters.
The ₹10,000 crore SME Growth Fund, the ₹2,000 crore top-up to the Self-Reliant India Fund for MSMEs, and the revival of 200 legacy industrial clusters together create scale at the grassroots. When clusters revive, logistics demand follows. Warehousing, multimodal transport, customs brokerage, and last-mile connectivity all become viable at volume.
Support to states under the ₹2 lakh crore SASCI Scheme ensures that this growth is geographically distributed. The Purvodaya initiative and the Integrated East Coast Industrial Corridor are especially relevant for export diversification beyond traditional western ports, unlocking eastern gateways for global trade.
What This Really Means for Exporters and Logistics Players
This budget does not promise overnight transformation. It does something more valuable. It aligns infrastructure, customs, financing, and industrial policy in the same direction.
For exporters, it means lower friction, better connectivity, and stronger predictability across supply chains. For logistics providers, it signals sustained opportunity in multimodal transport, specialised cargo, inland waterways, coastal shipping, and compliance-driven services.
Most importantly, it recognises that global competitiveness is not built at the port gate alone. It is built across corridors, clusters, containers, and customs desks.
Union Budget 2026–27 positions logistics as a strategic enabler of India’s export future. That shift in thinking is long overdue. And for Indian EXIM trade, it could be decisive.
