Budget 2024: Entrepreneurship opportunities highlighted in electric vehicle charging sector
The Indian government plans to support manufacturing and enhance the charging infrastructure for electric vehicles, according to Finance Minister Nirmala Sitharaman.
In a recent announcement during the presentation of the interim budget for 2024, Union Finance Minister Nirmala Sitharaman reiterated the Indian government's commitment to promoting the growth of electric vehicles (EVs) in the country. The Finance Minister outlined plans to support manufacturing and enhance the EV charging infrastructure, with the goal of expanding the electric vehicle ecosystem nationwide.
During her budget speech, Sitharaman emphasized the importance of increasing the adoption of electric buses through payment security mechanisms. However, there was a notable absence of detailed measures addressing the concerns of the Indian auto industry. Despite ongoing efforts to bolster the electric vehicle sector, the budget lacked specific announcements for the automobile manufacturing or electric vehicle industries.
While addressing the charging infrastructure for electric vehicles, Sitharaman highlighted the potential for entrepreneurship opportunities among vendors involved in supply, installation, and maintenance. Yet, she did not provide clear indications of government incentives for the auto industry.
Surprisingly, the interim budget did not include an extension of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, disappointing the auto industry's expectations. The FAME scheme has historically played a crucial role in supporting the growth of the electric vehicle industry in India.
Although the government has previously introduced duty changes to boost the electric vehicle sector, such as extending customs duty concessions for lithium-ion cells until September 2024, the interim budget did not introduce significant measures for the broader auto industry.
Despite the absence of specific announcements for the auto sector, Sitharaman's focus on expanding the electric vehicle ecosystem signals the government's continued interest in promoting cleaner and greener powertrain solutions in the country. The industry, however, awaits further developments and specific initiatives to address their concerns and foster sustainable growth.
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First Published:1 Feb 2024, 02:17 PM IST
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