Budget 2022-23 Expectations

The Cold Chain storage sector has been one of the most underdeveloped sectors in India. Considering the long-term vision of reducing food spoilage and growing the retail sector in India, building the cold chain is a mandatory requirement. The sector has started gaining attention during the pandemic due to the increased demand for vaccination as well as food storage and delivery. The Indian cold chain industry has a long journey to cover. From the upcoming budget, we expect lower GST rates for cold chain products to encourage entrepreneurs in the cold chain industry to bring in more solutions and new innovations benefitting the associated sectors like pharmaceutical companies, e-commerce, FPOs as well as end consumers.

Input tax credit to transporters who invest in cold chain and commodities under 5% GST regime like restaurants, and subsidy on environmentally sustainable solutions along the lines of Indian Cooling action plan for promotion of those technologies. Promotion of locally manufactured products in the refrigerated storage and transport industry through subsidy on manufacturing and R&D investments. Consider a reduction in import duties for critical components like compressors that is essential for cold chain solution providers in India. This will not only motivate the cold chain companies but will also enable the building of a robust cold chain infrastructure in India.

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