Auto Budget 2024: No announcements on EV Industry

Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2024-25 today, 23 July 2024, badging a range of responses from industry leaders. While the budget introduced several measures to support MSMEs and skill development, some sectors expressed disappointment over unmet expectations, as there were no announcements on the EV segment. 

Support for MSMEs and skill development praised

Mukesh Taneja, CEO and Co-Founder of GT FORCE, lauded the government's initiative to assist MSMEs through credit guarantee schemes, particularly for those in the manufacturing sector. He also appreciated the investment in 1,000 industrial training centers aimed at addressing the skill shortage in the workforce. "These steps create a solid foundation for growth," Taneja stated. However, he noted that the budget fell short in increasing allocations for expanding EV charging infrastructure, a crucial element in fostering consumer confidence in electric vehicles. Taneja emphasized the need for further actions to boost EV adoption and position India as a leader in the global electric mobility sector.

Emphasis on job creation and women's empowerment

Kunal Arya, Co-Founder and Managing Director of ZELIO, acknowledged the budget's focus on job creation in the manufacturing sector through a new employment-linked scheme and the significant allocation of ₹2 lakh crore for education, employment, and skilling initiatives. Arya commended the incentives for employing first-time workers and the increased funding for women's empowerment, highlighting these steps as crucial for fostering a more inclusive and diverse workforce. However, Arya expressed disappointment over the lack of targeted measures for the EV sector. He pointed out that more funding for EV charging infrastructure is essential for building consumer confidence and accelerating EV adoption.

Additionally, Arya suggested that reducing GST on EV components and batteries, simplifying financing options, and enhancing support for R&D in EV technology would have made electric vehicles more affordable and fostered innovation in the sector.

Addressing capital and skill needs in the EV sector

Chakravarthi C., Managing Director of Quantum Energy, highlighted the challenges faced by the EV sector, particularly the need for a robust network of manufacturers and suppliers. He expressed satisfaction with the budget's provisions for credit guarantee schemes for MSMEs and the additional investment in industrial training centers. "These measures will help address our capital and skill concerns," Chakravarthi stated.