According to insights.dsij.in, India’s Union Budget 2026–27 allocates Rs 5,98,520 crore to transport and targets a doubling of inland waterways and coastal shipping’s cargo share—from 6% to 12% by 2047. Key measures include new Dedicated Freight Corridors (Dankuni–Surat), 20 new National Waterways starting with NW-5 in Odisha, AI-enhanced port scanning, a single digital customs window by April 2026, and tax incentives for bonded-zone manufacturing logistics. The Budget also launches a Rs 10,000 crore container manufacturing scheme and offers a 2% margin safe-harbour for component warehousing.
According to insights.dsij.in, the Union Budget 2026–27 introduces targeted fiscal and infrastructural measures aimed squarely at strengthening India’s logistics and supply chain capabilities — with explicit goals to accelerate cargo movement, reduce emissions, and align logistics more closely with manufacturing and export ambitions.
Greener Freight and New Corridors
The Budget advances sustainable cargo movement through expanded infrastructure and modal shift incentives. It proposes new Dedicated Freight Corridors connecting Dankuni in the East to Surat in the West. Additionally, plans are outlined to operationalise 20 new National Waterways over the next five years, beginning with NW-5 in Odisha, which will link mineral-rich zones like Talcher and Angul to the ports of Paradeep and Dhamra. To support inland shipping, a ship repair ecosystem is planned at Varanasi and Patna. A Coastal Cargo Promotion Scheme aims to raise the share of cargo moved via inland waterways and coastal shipping from 6 per cent to 12 per cent by 2047.
Faster Borders and Lower Friction
On trade facilitation, the Budget targets “minimal intervention” customs. Cargo clearances are proposed to move through a single interconnected digital window, with processes for food, drugs, and animal products — frequently cited as major causes of cargo interdictions — scheduled to be operational by April 2026. Port efficiency improvements include expanded non-intrusive scanning using advanced imaging and AI-led risk assessment, with the goal of scanning every container across major ports in phases. Customs warehousing will shift to a warehouse operator-centric framework based on self-declarations and electronic tracking to cut delays and costs.
Manufacturing-Linked Logistics
To reinforce electronics supply chains, the Budget introduces a safe-harbour for component warehousing in bonded warehouses at a 2 per cent margin, and a five-year income tax exemption for non-residents providing capital goods or tooling to toll manufacturers in bonded zones. A Rs 10,000 crore container manufacturing scheme over five years adds an industrial layer to the logistics push. Overall, the transport sector has been allocated Rs 5,98,520 crore in Budget Estimates for 2026–27.
Strategic Industry Focus
The source identifies specific companies likely to benefit from these initiatives:
- Container Corporation Of India Ltd
- Delhivery Ltd
- Blue Dart Express Ltd
Source: insights.dsij.in
Compiled from international media by the SCI.AI editorial team.
