The Union Budget 2024 was presented by the Finance Minister Nirmala Sitharaman, which outlined certain prospects as well as emerging anticipations for the fast-growing Indian automotive sector. The sector expected large schemes like FAME III and further tax incentives to help electrify automobiles and support native manufacturers, yet, the financial plan introduced several steps that are likely to support the business both instantly and in the long run.
Union Budget 2024
Various auto makers in India have expressed mixed responses to the Union Budget of 2024 presented to the Parliament. There are several aspects of the budget that have been noted by industry leaders that they believe will help in the growth of the sector. Vinod Agarwal, President of SIAM and MD & CEO of VECV, expressed the hope that the previous level of consecutive growth and has thanked government for liberal allocation for rural development and infrastructure which reached Rs. 66 lakh crore as a progressive step towards reviving the economy, mainly rural economy. He also liked the budgets approach on skilling, manufacturing, MSMEs, and exemption of customs duty on import of strategic minerals like lithium and cobalt required in battery production.
Shradha Suri Marwah, who is the President of ACMA and the CMD Subros, appreciated the budget for envisioning ‘Viksit Bharat’, for growth which is sustainable and inclusiveness in particular for manufacturing sector. Ms. Sharma appreciated the efforts made in the form of credit guarantee to MSMEs, improvement in energy security, and the scrapping of angel tax to boost startups. Also, the measures on personal income taxes are projected to raise the amount of disposable income and hence boost expenditure and growth.
Other leaders in the relevant industry made similar comments as those made above. Uday Narang, Founder and Chairman of Omega Seiki, said there is a need for import duties exclusion of critical minerals dedicated to battery production so that EVs are affordable for everyone. Co-founder & CEO of MiniMines, Anupam Kumar spoke about Critical Mineral Mission that will help to create the domestic processing capacities and Kunal Gupta, CEO and Co-founder of EMotorad also mentioned that dedicated e-commerce export marketplaces and affordable loans for MSME will be beneficial for the manufacturers.
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