February 3. 2023: Nirmala Sitaraman the Union Finance minister of India presented the Interim Budget today ahead of the Lok Sabha elections in 2024. The major announcement for the EV sector in this interim budget was the government’s continued commitment to accelerate EV adoption in India. Some of the key steps were zero carbon edits, funds for start-up India, the payment security mechanism for e-buses, the expansion of a comprehensive EV charging infrastructure for public and private vehicles to foster overall growth and development in the EV sector.
Post Interim Budget reactions from the EV industry
Speaking on the budget announcements, Vinod Aggarwal, President-SIAM said, “The announcement on strengthening the Electric Vehicle ecosystem by supporting manufacturing and charging infrastructure, will boost the development and adoption of EVs in the country. He further stated, the encouragement of Payment Security Mechanism for adoption of e-buses for public transport networks is also a welcome step.”
Akash Gupta, Co-Founder and CEO, Zypp Electric
We applaud the government's commitment in the budget to nurturing the Electric Vehicle (EV) ecosystem. The allocation of resources towards the development of a robust infrastructure signifies a pivotal moment for our nation. This budget not only encourages entrepreneurship but also opens doors for a multitude of vendors, providing ample opportunities for supply and installation services. The emphasis on supporting manufacturing and charging infrastructure not only aligns with our company's mission but also ensures a sustainable future for the entire EV industry. Additionally, the focus on creating employment opportunities for the youth, particularly those with technical skills in manufacturing, installation, and maintenance, will catalyze innovation and growth. We look forward to collaborating with the government in realizing this shared vision and contributing to the electrifying transformation of our nation's mobility landscape.
Hyder Khan, CEO of Godawari Electric Motors
Our government is committed to advancing sustainable development by enhancing and strengthening the electric vehicle (EV) ecosystem. Through robust backing of manufacturing and charging infrastructure, they have reinforced the groundwork for a more environmentally friendly future. The focus on creating accessible and eco-conscious mobility solutions underscores the significance of this announcement in the budget. These efforts will enhance EV adoption, paving the way for a cleaner, more interconnected future. The details of this announcement in the forthcoming budget will play a crucial role in steering the country's net-zero agenda in a positive direction.
Sameer Aggarwal, CEO & Founder - Revfin Services
"The vote-on-account and interim budget presented by the Hon'ble Finance Minister, signals towards a transformative era for the nation. The commitment to fortify the Electric Vehicle (EV) ecosystem and support manufacturing and charging infrastructure aligns with global environmental goals, positioning India as a leader in widespread sustainable mobility adoption. Continued focus on the rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth. Skill India Mission's success in training 1.4 crore youth strengthens the workforce for evolving job demands."
Dinesh Arjun, Co-founder and CEO, Raptee Energy
"Various initiatives announced by the FM today clearly demonstrate the government's intention to further accelerate EV adoption and also generate significant employment opportunities for the youth. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’ , the biggest barrier for EV adoption in our country. The government's support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles".
Rajib Gangopadhyay, founder EMotorad.
''In the 2024 interim budget, the Indian government has delivered promising news for the electric vehicle (EV) industry and startups. The extension of tax benefits for startups until March 31st, 2025, provides crucial relief for early-stage businesses, fostering an environment conducive to growth. Additionally, the budget allocates funds to youth-centric programs such as the Fund of Funds, Startup India, and Startup Credit Guarantee Schemes, empowering the youth and stimulating innovation. Finance Minister Ms. Sitharaman's announcement concerning the EV industry aims to accelerate the adoption of e-vehicles, aligning with global sustainability goals and emphasizing their role in reducing carbon emissions. The government's dedication to bio-manufacturing and environmentally friendly practices aligns with the intention to achieve zero carbon emissions by 2070. Collaborating with manufacturers and charging station providers, the government seeks to cultivate a thriving electric vehicle culture, symbolizing a profound commitment to a greener, cleaner tomorrow.EMotorad, in alignment with this vision, remains committed to 'First Developing India,' focusing on giving back to the country and supporting national agendas for sustainable development. The budget's impact extends beyond the EV ecosystem, positively influencing the landscape of sustainable climate change startups and upcoming ventures in the country, reflecting a shared vision for a prosperous, sustainable future for India.''
Benjamin Lin, President, Delta Electronics India
The Budget 2024 brings a significant boost to the future of mobility. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. The encouragement for greater adoption of e-buses in public transport networks, coupled with the implementation of payment security mechanisms, not only propels environmental sustainability but also sparks innovation and economic prosperity. This strategic move not only aligns with our values at Delta Electronics India but also signifies a significant leap towards a greener and technologically advanced future for the entire industry.
Aman Singh, Co-founder and Head of Analytics, Intangles
"The budget for 2024 is a significant stride forward for the automotive sector, particularly for the EV ecosystem. The government's commitment to expanding India’s electric vehicle charging infrastructure and the approval of numerous vendors for the installation of EV charging points nationwide reflects a forward-thinking approach. This move not only propels the EV ecosystem but also opens numerous entrepreneurship opportunities, promising a surge in employment, especially for the technically skilled youth. The focus on innovation and the support for startups through various schemes, coupled with the provision of a substantial corpus for long-term, low-interest financing, is set to catalyze a transformative era for entrepreneurial ventures. We are excited and geared up to be a part of this golden era of technological and sustainable advancement."
Rashi Agarwal, CBO & Co-Founder, Zypp Electric
As a woman entrepreneur, the post-budget focus on empowering women is truly uplifting. The allocation of thirty crore Mudra Yojana loans reflects a powerful endorsement of our capabilities. The government's commitment to ease of living and preserving women's dignity has led to a commendable twenty-eight per cent rise in female higher education enrolment and forty-three per cent in STEM courses over the past decade. These initiatives are already making a substantial impact on women's workforce participation. Additionally, I applaud the government's forward-looking stance in supporting the electric vehicle (EV) sector. This move not only aligns with global sustainability goals but also presents immense opportunities for women entrepreneurs to contribute to a greener, technologically advanced future. The budget's dual focus on women's empowerment and the EV sector is a testament to our nation's commitment to inclusive progress and environmental sustainability.
Mr. Niranjan Nayak, MD, Delta Electronics India
I welcome the strategic initiatives laid out in the 2024 budget. The government's strong support for the e-vehicle ecosystem, including manufacturing, charging infrastructure, and incentivizing e-bus adoption, is likely to bring about important changes in our industry. Additionally, the introduction of secure payment mechanisms for e-buses addresses a crucial obstacle to public acceptance. At Delta Electronics India, we understand the transformative potential of e-mobility and are prepared to use our global expertise and local knowledge to accelerate its development. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are excited to be part of this journey.
Brajendra Singh Tomar, Co-founder & CEO, Finayo
Today's interim budget shows strong support for sustainable planning, energy transition to a cleaner future, and overall development. The government's commitment to bolstering the electric vehicle (EV) industry and bio-manufacturing is clear. Finance Minister Ms. Sitharaman's introduction of zero carbon credits and tax breaks for entrepreneurs demonstrates a strong commitment to building a green and sustainable economy. The Fund of Funds, Start-up India, and Start-up Credit Guarantee Schemes are aiding our youth by providing critical financial support and guarantees to promote the creation of new and innovative enterprises. Furthermore, there is a strong emphasis on extending the e-vehicle ecosystem by improving manufacturing and charging facilities. The development of a new bio-manufacturing plan aimed at promoting biodegradable products demonstrates a desire to shift manufacturing usage towards a more environmentally friendly approach. This program supports global efforts to improve sustainable transportation and reduce carbon emissions. The government's attention on EVs and investment in charging infrastructure demonstrates its commitment to promoting their wider adoption. Collaboration among governments, car manufacturers, and charging station providers is regarded as critical for building a fully operational and sustainable electric vehicle culture. Furthermore, the government's desire to increase EV sales while revising vehicle pollution rules demonstrates its strong commitment to the EV sector.
Vimal Kumar CEO & Co-Founder of Ionage Technologies.
"The Government’s focus on EV as a sector and on green energy and sustainable transportation in the Interim Budget 2024, is a boost for innovation and faster adoption of EV’s across India.
As of now, India boasts a total of 6,586 operational public electric vehicle (EV) charging stations, which are spread across 68 cities in 25 states and Union Territories. In March 2023, the government sanctioned 2,877 electric vehicle charging stations, with 1,576 charging stations to be installed along 9 expressways and 16 highways, under phase-II of the FAME India Scheme. And now, the Union Budget 2024 reiterates the governments ongoing support to the sector, which will be valuable in achieving the goal of 30% EV penetration by 2030.
The bold initiatives, particularly the rapid adoption of e-buses for public transport networks supported by a robust payment mechanism, signal a transformative phase. This not only fuels innovation but also catalyzes the expansion of a comprehensive EV charging infrastructure for public and private vehicles. This also aligns with IONAGE's mission of democratizing EV charging accessibility.
Additionally, the Government's emphasis on youth reskilling further amplifies the positive narrative. By endorsing vocational courses and nurturing research-oriented streams, it not only addresses talent gaps but also cultivates a generation ready to lead technological advancements in the EV and energy sectors. In essence, the Interim Budget 2024 paints a promising picture for the EV landscape, aligning seamlessly with IONAGE's vision for a sustainable and technologically advanced future."
Namit Jain, Founder, CEO, Zen Mobility
"At Zen Mobility, we emphasize that the pressing need of the hour is for governments to champion a sustainable future by extending vital support to the Electric Vehicle (EV) industry. Providing subsidies and monetary support to OEM's is paramount, fostering an environment that propels EV sales and facilitates seamless adoption in the mass market. At Zen Mobility, we applaud government initiatives to expand and fortify the e-vehicle ecosystem, including support for manufacturing and charging infrastructure. This signifies a collective stride toward a cleaner, greener transportation landscape."
Anant Nahata, Chief Executive Officer at Exicom Group.
“The government’s push to enhance the EV ecosystem in the country is a positive move. This will expand and support the growth of manufacturing and charging infrastructure in India and in turn promote further growth of the EV ecosystem. The emphasis on E-buses underscores the government’s accent on enhancing public green mobility. This is in sync with India’s policy priority of gradual decarbonisation across sectors, ultimately leading to the 2070 vision of net-zero. For 2030, India aims to achieve that EVs account for at least 30 per cent of new vehicles sales by 2030, under the EV30@30 campaign. Exicom a leader in the charging infrastructure in the EV space is well positioned to capitalise on the emerging opportunities and contribute further to the electrification roadmap in the mobility sector for India.”
Priya Hardikar, CFO, KPIT.
“Budget 2024 reflects measures to empower our journey towards ‘Vikshit Bharat’ by 2047; be it with the estimates on reducing the fiscal deficit to 5.1% of the GDP or FM’s commitment of INR 11.1 lakh crore towards comprehensive infrastructure development. The INR 1 crore corpus, reinstates the country’s R&D potential, the next progression frontier. It shows the leap that the country is taking across several sunrise sectors. We also commend the Government’s green growth vision. Furthering biomanufacturing, EV infrastructure, and encouragement of greater adoption of e-buses are all steps critical to reaching the country's 2070 net zero ambitions. All in all, this budget strategically supports the country’s long term vision.”
Greaves Cotton Ltd.
"Reflecting on the Interim Budget 2024 presented today, Greaves Cotton Limited reaffirms its commitment to aligning strategies with the nation's vision. The budget's commitment to achieving net zero by 2070 and a renewed focus on sustainability align seamlessly with our goal to shape the future of sustainable last-mile green mobility. The INR 2,671 crore allocation significantly boosts EV makers, fostering growth and innovation. We commend the emphasis on empowering youth and harnessing 'Nari Shakti', recognising the significant contributions of women in our workforce. The increased allocations for the National Hydrogen Mission reinforce our confidence in India's shift towards clean energy solutions. These initiatives are poised to catalyse innovation, boost skill development and stimulate growth in crucial sectors for India's sustainable development journey."
Niraj Rajmohan, Founder, CTO.
"At Ultraviolette we firmly believe that electric mobility is the future. There is a compelling need and opportunity to accelerate adoption by establishing reliable ecosystems around EVs. We are happy to see the Government of India's renewed commitment to EV manufacturing. The expansion of the charging infrastructure will make charging more accessible and boost the convenience for EV owners. While we appreciate the lower GST rates on EVs and chargers which have made EVs more affordable, we believe that the reintroduction of tax benefits for EV financing will greatly incentivize adoption. With respect to the larger policy framework, we continue to advocate that subsidies and benefits should spur cutting-edge technology development and not be capped by product cost."
Neel Chheda, Senior Executive Vice President & Head – Auto & Actuarial Analytics, TATA AIG General Insurance Company Limited.
“The interim budget of 2024-25 unveils a visionary initiative to enhance EV ecosystem. By bolstering manufacturing capabilities and charging infrastructure, it aims to drive the adoption of clean and efficient transportation. We can aspire to create an ecosystem that not only benefits the environment but also propels our nation to the forefront of global leadership in sustainable energy. We expect more collaborations with the EV industry enabling solutions that cater to the evolving needs of the e-mobility landscape. We look forward to remaining committed to support and contribute to the growth and success of government’s vision for a greener future.”
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