Interim Budget 2024: How auto industry reacts to it
Union Finance Minister Nirmala Sitharaman on Thursday announced the interim budget 2024, where she mentioned that the Indian government will continue to support the electric mobility ecosystem in the country. She stated that the government will continue supporting the manufacturing of electric vehicles and their components as well as in the development of the EV charging infrastructure. However, there was no word on the extension of the FAME scheme, which remains a major demand from the industry.
When it comes to allocation for road infrastructure development, which received a major boost in the last few years, in the interim budget, there was no clear direction for that. Sitharaman mentioned that there will be an 11.1 allocation increase for infrastructure development, but that didn't reveal what would be the allocation for road infrastructure development, with which the growth of the auto industry is directly linked.
Also Read : Interim Budget 2024: Govt to boost EV growth with supportive infrastructure
The auto industry stakeholders have shared their feedback on the interim budget 2024 announcements. Here's a quick look at what they think.
The 2024-2025 Interim Union Budget emphasizes a green public transportation system, prioritizing a strong charging infrastructure for the widespread adoption of electric vehicles. India's vast expanse requires a comprehensive network with thousands of installations. This commitment is poised to spur employment growth, benefiting startups and MSMEs, with ongoing service and maintenance creating additional job opportunities.
However, a noticeable gap in the budget is the absence of continued direct customer subsidies, a critical element that played a substantial role in driving the adoption of electric vehicles across various categories over the last two years. We eagerly await the government's comprehensive strategy and commitment to sustaining the electric vehicle manufacturing ecosystem. It is anticipated that a combination of fiscal and non-fiscal interventions will be outlined, offering crucial support for the industry in the coming years until it achieves a threshold for self-sustained growth.
With the Interim Union Budget 2024 announcement completed, Renault India embraces the transformative vision outlined by Finance Minister Nirmala Sitharaman, steering towards a 'Viksit Bharat' by 2047. As a committed contributor to the nation's progress, we applaud the inclusive approach reflected in initiatives like the Fasal Bima Yojana, benefiting 4 crore farmers, showcasing the government's dedication to rural prosperity.
Renault India enthusiastically supports the impetus on advancing the e-vehicle ecosystem, recognizing its pivotal role in sustainable mobility. The promise of expanded manufacturing and charging infrastructure aligns seamlessly with the commitment to delivering innovative, eco-friendly solutions. Moreover, the emphasis on e-buses for public transport echoes aspirations for fostering a greener, more sustainable future. Renault India stands poised to actively engage and collaborate in driving positive change and contributing to the realization of a prosperous and sustainable India.
It is gratifying to witness the Honorable Finance Minister Shrimati Nirmala Sitharaman Ji present a prudent and inclusive budget. The emphasis on 'Garib Kalyan, Nari Shakti, Yuva (youth empowerment), and Annadata (empowerment of farmers)' by prioritizing their needs and aspirations reflects a commitment to the holistic development of all, aligning with the government’s vision of “Sabka Saath Sabka Vikas”. Upholding fiscal discipline has consistently been the hallmark of this government, and this Budget reaffirms that commitment. Through these measures, the interim Budget takes a decisive stride towards realizing the vision of making India ‘Viksit Bharat’ by 2047 - the centennial year of our independence.
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.
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We as an OEM are thrilled with the Interim Budget announced as the government's commitment to expand and strengthen the EV ecosystem will significantly boost manufacturing and infrastructure development. This will emerge as a notable contribution to achieving net zero goals and lays a solid foundation for sustainable mobility and a greener environment. Also, as highlighted by the Honourable Finance Minister, the new age technologies and data are changing the lives of people and businesses. They are also enabling new economic opportunities as India is showing solutions through innovation and entrepreneurship.
Following the Interim Union Budget 2024, we enthusiastically embrace government's vision for a 'Viksit Bharat' by 2047. As an electric vehicle (EV) manufacturer, we applaud the strategic focus on expanding the e-vehicle ecosystem, supported by manufacturing and charging infrastructure enhancements. The budget's commitment to research and innovation, exemplified by a one lakh crore rupees corpus with a fifty-year interest-free loan, signifies a golden era for our tech-savvy youth, aligning seamlessly with our mission for sustainable mobility solutions.
Prime Minister Modi's visionary expansion of "Jai Jawan Jai Kisan Jai Vigyan" underscores the pivotal role of innovation in India's development. We stand ready to contribute to this era of unprecedented growth, leveraging our expertise to push the boundaries of technology and sustainability. As we enter the next five years with 'Sabka Vishwas,' the trinity of demography, democracy, and diversity, backed by 'Sabka Prayas,' holds the potential to fulfil the aspirations of every Indian.
