Budget 2024: Centre to boost EV ecosystem, new bio-manufacturing scheme in the offing, says FM
Budget 2024: Centre to boost EV ecosystem, new bio-manufacturing scheme in the offing, says FM
Highlighting the government's commitment to fostering green growth, Sitharaman disclosed the launch of a new scheme for bio-manufacturing aimed at promoting sustainable practices. "The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure," she emphasised, underlining the pivotal role of EVs in the country's sustainable development agenda.
Furthermore, Sitharaman reiterated the government's dedication to implementing economic policies conducive to sustaining growth and fostering investment. "Our government will adopt economic policies that will sustain growth and contribute to powering investment and fulfilling aspirations," she affirmed, outlining the administration's overarching vision for economic prosperity.
The government's focus on infrastructure development was also underscored during the budget presentation. "All forms of infrastructure – digital, social, physical – are being built in record time," Sitharaman declared, highlighting the multifaceted approach towards infrastructure enhancement across various sectors.
India's progress in building its EV charging infrastructure was acknowledged, albeit with recognition of the challenges ahead. Despite advancements, the ratio of EVs to charging stations remains skewed, with industry experts noting that the current ratio stands at nearly 9:1, whereas the ideal ratio should be 4:1. This underscores the need for further expansion of charging infrastructure to facilitate the transition towards electric mobility.
Industry stakeholders welcomed the government's forward-looking approach towards the automotive sector, viewing it as aligned with national objectives such as promoting self-reliance (Atmanirbhar Bharat) and transitioning towards net-zero carbon emissions by 2070.
Veer Singh, CEO of Lord's Automotive Pvt. Ltd., hailed the sustained emphasis on boosting manufacturing capabilities and expanding charging infrastructure as instrumental in driving EV adoption. “The forward-looking approach adopted in the interim budget towards the automotive sector has been in alignment with the government’s goals of promoting Atmanirbhar Bharat and moving firmly towards net-zero carbon emissions by 2070,” he said.
Ankit Kumar, CEO of Skye Air Mobility, commended the budget for extending concessional tax rates for new manufacturing units, which he believes will spur innovation and enhance competitiveness. “The India Budget 2024 heralds a powerful catalyst for our nation’s economic advancement. By extending concessional tax rates for new manufacturing units, fostering innovation receives a significant impetus. The strategic emphasis on training for MSMEs not only enhances competitiveness but also nurtures a vibrant entrepreneurial ecosystem, propelling Bharat towards global leadership,” he said.
Similarly, Maulik Manakiwala, Partner at BDO India, lauded the focus on expanding the EV charging network, foreseeing increased opportunities for small vendors in manufacturing, installation, and maintenance.
The budget also received appreciation for its initiatives aimed at fostering gender diversity and empowering women entrepreneurs. Pragya Goyal, CEO & Co-Founder of Vegh Automobiles, lauded the infusion of loans under the Mudra Yojana for women entrepreneurs, citing its potential to bolster the EV manufacturing landscape and promote gender diversity. “The infusion of thirty crore Mudra Yojana loans into the hands of women entrepreneurs is a game-changer, providing financial backing for aspiring female leaders to venture into the dynamic field of electric vehicle manufacturing. The commendable twenty-eight per cent surge in female enrolment in higher education, particularly in STEM courses, fortifies the talent pool for the EV sector,” she said.
While acknowledging the absence of specific details regarding the EV mobility mission, Atul Gupta, Co-founder & Director at e-Sprinto, expressed optimism about the government's commitment to strengthening EV manufacturing and infrastructure, expecting supporting policies to follow suit. “Since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government's agenda, and we do expect supporting policies to follow soon,” he said.
Rajib Gangopadhyay, founder EMotorad said, "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."
"The initiative of the Government to further expand and strengthen the EV ecosystem is in perfect alignment with the aspiration to facilitate a smooth transition to green energy. On similar lines, the decision to support the development of manufacturing setup will play a crucial role in boosting the resilience of the industry that will invariably focus on manufacturing of highest quality products," said Dhirendra Choudhary, CEO, Bry-Air.
Chakravarthi C., Managing Director - Quantum Energy said, "The interim budget might not have specified any policy or allocation towards EV sector, however, it did mention the intention to promote EV in public transportation. Additionally, what we need right is to strengthen the EV ecosystem holistically for which budget indicated towards policies and measures that will be undertaken to support manufacturing and charging infrastructure. Clearly, EV stands in the priority list of the government and we can expect the upcoming FAME policy and August session to encompass all the particulars."
Shalya Gupta, CEO, PHF Leasing Limited said, "It was good to see the Government continuing its thrust on the EV sector. The focus on supporting manufacturing of EV vehicles in India and charging infrastructure will create the right environment for the growth of the EV sector. With a robust ecosystem in place, the Financing solutions become easier to implement with risk of default decreasing."
Manas Arora, Co-founder & CFO , Alt Mobility commented, "In a visionary move towards sustainable transportation, Alt Mobility applauds the Finance Minister's commitment to bolster the e-vehicle ecosystem. By offering innovative solutions, Alt Mobility stands ready to contribute to the government's vision, supporting the expansion of e-buses and charging infrastructure. Our commitment to lease charging infrastructure aligns seamlessly with the Finance Minister's emphasis on fostering a robust e-mobility network. This collaboration not only accelerates the transition to green transportation but also ensures a seamless and secure payment mechanism."
Source:- Business Today