July 24, 2024: Finance Minister Nirmala Sitharaman’s seventh Budget, marking the twelfth under Prime Minister Narendra Modi’s government, represents a significant departure from the approach taken in previous Budgets. This Budget is notable for its new strategies and priorities in managing India’s economy. Some of the highlights on the green economy and sustainability included focus on climate action initiatives, renewable energy projects, and sustainable development goals. Also the Introduction of green bonds to finance environmentally sustainable projects.
The electric vehicle (EV) industry has reacted positively to the Budget presented by Finance Minister Nirmala Sitharaman. Here are some key highlights and reactions from the EV industry:
Mr Vinod Aggarwal, President, SIAM and MD & CEO, VECV, on Union Budget 2024-25 said, “The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of Rs 2.66 Lakh crores is a welcome step that will boost the rural economy.
SIAM also welcomes several proposals in the budget such as:
- Measures for skilling and upskilling and support to manufacturing and employment generation.
- Support to MSMEs, many of whom form the large supplier base for the Auto sector.
- Exemption of Customs Duty on import of Lithium, Cobalt and other rare minerals and extension of concessional Customs Duty on Li-Ion Cells till March 2026; and
- Withdrawal of Equalization Levy of 2% on e-transactions.
These announcements would continue to propel growth of the Indian Auto Industry.”
Rashi Agarwal, Co-Founder and CBO, Zypp Electric
The Union Budget’s focus on increasing women’s workforce participation and youth skilling is a significant step towards addressing key barriers women face in the workforce, promoting gender equality and economic empowerment. The youth skilling initiative is a forward-thinking move that will enhance workforce skills and employability, driving industry growth and boosting the gig economy, particularly by increasing two-wheeler and three-wheeler sales beyond metropolitan areas. Abolishing the angel tax is a commendable decision to foster innovation and support the start-up ecosystem. However, we anticipated announcements on the FAME-III policy and special incentives for the EV sector, which weren’t part of this budget. Maintaining policy consistency will be essential to the overall expansion of the electric vehicle market. We expect that the government will provide clarification and lower or eliminate taxes on last-mile delivery services before the present program expires this month.
Ravi Machani, Co-Founder Investor, Tresa Motors
Tresa Motors commends the Union Budget 2024 for taking significant strides towards upskilling. With the growing demand for expertise in areas like battery technology and power electronics, the budget’s focus on upskilling programs and industry-education collaboration is crucial in bridging the skills gap. Skilled workers are essential for the EV industry’s growth. It’s an exciting time with abundant opportunities for those willing to learn new skills. The government’s initiative to upskill students over the next five years will ensure a steady supply of talented professionals, driving innovation and sustainability in the EV sector.
Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd, said, “We at Wardwizard Mobility welcome the Government’s progressive and forward-thinking Union Budget 2024-25. The commitment to maintaining strong fiscal support for infrastructure projects over the next five years is a significant boost for the automotive sector. The announcement to fully exempt customs duty on critical materials, such as rare earth metals including lithium, can further incentivize electric mobility. We are looking forward to receiving the benefit of this exemption along with the sectors mentioned by the Hon’ble Finance Minister. The focus on increasing women’s participation in the workforce will also benefit the sector. The Union Budget 2024-25 presents tremendous growth opportunities for all sectors, and Wardwizard Mobility is committed to contributing to India’s journey toward a cleaner, more inclusive, and sustainable future.”
Niranjan Nayak, MD, Delta Electronics India
The Union Budget 2024-25 presents a compelling vision for a thriving ‘Viksit Bharat, we at Delta are particularly encouraged by the government’s comprehensive approach that prioritizes skilling, infrastructure development, and digital transformation. The focus on creating a skilled workforce through internship programs aligns perfectly with our own commitment to nurturing talent and driving innovation.
We also applaud the budget’s emphasis on increasing women’s participation in the workforce. Initiatives like women’s hostels, creches, and skill development programs are crucial steps towards a more inclusive and empowered society. Delta strongly believes in the power of diversity, and these measures will contribute significantly to India’s socio-economic progress.
Overall, the budget serves as a catalyst for accelerating our growth trajectory and supporting India’s digital transformation journey. Delta’s focus on emerging technologies and domain expertise aligns seamlessly with the government’s vision for a knowledge-based economy. We are excited about the opportunities presented and confident in our ability to play a central role in shaping a ‘Viksit Bharat.’ We look forward to collaborating with all stakeholders to create a sustainable and inclusive growth ecosystem for India’s future.
