Finance Minister Nirmala Sitharaman presented the Union Budget 2024, bringing a mix of expectations and realizations for the blooming Indian automotive industry. The initial reactions from the automotive industry to the Union Budget 2024 have been cautiously optimistic. Here, let’s look at how the industry has reacted to the Budget 2024.
Mr Vinod Aggarwal, President, SIAM and MD & CEO, VECV: “The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of Rs 2.66 Lakh crores is a welcome step that will boost the rural economy.”
He further noted the budget’s key measures for skilling and upskilling, support to manufacturing and employment generation, support to MSMEs—many of whom form the large supplier base for the auto sector—exemption of customs duty on import of lithium, cobalt, and other rare minerals, and extension of concessional customs duty on Li-Ion cells till March 2026, and withdrawal of the equalization levy of 2% on e-transactions. These announcements, he believes, would continue to propel the growth of the Indian auto industry.
Shradha Suri Marwah, President of ACMA and CMD of Subros noted the budget’s role in driving sustainable growth, commenting, “The budget, a blueprint for Viksit Bharat, will drive sustainable yet inclusive growth, especially in the manufacturing industry, at a rapid pace,”
“Focus on strengthening MSMEs through Credit Guarantee scheme and credit support during stress period, measures to bolster energy security and encouragement to start-ups by abolishing angel tax are indeed steps in the right direction. Further, the proposals for personal Income Tax will put more money in the hands of people thus fuelling consumption leading to economic growth.” she added.
FADA President Mr Manish Raj Singhania: “The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on ‘Garib’, ‘Mahilayen’, ‘Yuva’, and ‘Annadata’ highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales.
The budget’s emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power.
Significant infrastructure investments, with an allocation of Rs. 11,11,111 crores for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience.
The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales.However, the industry must also navigate certain challenges. While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices. Overall, the budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry.”
Mr Yatin Gupte, CMD, Wardwizard Innovations & Mobility Ltd: “We at Wardwizard Mobility welcome the Government’s progressive and forward-thinking Union Budget 2024-25. The commitment to maintaining strong fiscal support for infrastructure projects over the next five years is a significant boost for the automotive sector. The announcement to fully exempt customs duty on critical materials, such as rare earth metals including lithium, can further incentivize electric mobility. We are looking forward to receiving the benefit of this exemption along with the sectors mentioned by the Hon’ble Finance Minister. The focus on increasing women’s participation in the workforce will also benefit the sector. The Union Budget 2024-25 presents tremendous growth opportunities for all sectors, and Wardwizard Mobility is committed to contributing to India’s journey toward a cleaner, more inclusive, and sustainable future.”
Mr. Rajeev Chaba, CEO Emeritus, JSW MG Motor India Pvt. Ltd: ” During Union Budget 2024, Honourable Finance Minister’s decision to waive import duties on critical minerals, including lithium, copper, and cobalt, is a step in right direction for the electric vehicle [EV] industry. This move will reduce battery manufacturing costs, making EVs more affordable and attractive. It will also enhance lithium-ion battery production in India, supporting localisation efforts and advancing the sector’s growth. Additionally, the government’s initiatives for job creation and investment in industrial training centres will ensure a skilled workforce in the automotive sector. While the budget lays a strong foundation for overall economic growth, we look forward to ongoing government’s support and incentives to accelerate green mobility and promote sustainable practices.”
BLive CEO & Co-Founder Samarth Kholkar: “The 2024 Union Budget has blown the bugle for India’s EV and last mile logistics sectors. With the waiving off of import duties on 25 minerals—critical inputs like lithium—and the outlay of Rs. 26,000 crores for road connectivity projects, will further support the adoption of EV for last mile revolution. These would also support to set the tone for the ambitious target of 30% EV sales by 2030.
PLI schemes are likely to bring down cell prices, making batteries more affordable. Better road infrastructure will improve the speed of goods movement and last mile efficiency. The potential creation of 30 lakh jobs in manufacturing adds another spark to our economic engine and benefits particularly the two-wheeler segment.
This optimism is further fueled by the abolishing of angel tax on all classes of investors, putting that extra zip in our startup ecosystem. The move is expected to reduce the financial and regulatory burden on startups substantially, encouraging more angel investors to fund innovative ventures in the EV and logistics space.
More intently, though, we believe that much bolder steps are now needed. Bringing down GST on all components of EVs to 5 percent will make electric vehicles more pocket-friendly and increase adoption. Our charging and battery swapping infrastructure must be expanded to eliminate range anxiety and provide seamless service to our users. While we are charging toward a greener future, such additional measures certainly are something which we all look forward to seeing in effect. With absolute clarity now ahead, it’s on full charge, and India shall see its last mile changed with innovative, eco-friendly solutions. Electric, efficient, and enthusiastically embraced is the future of logistics!”
Mr Vikram Handa, MD, Epsilon: “Overall the Union Budget presents positive measures for various industries. For the battery sector specifically, the government’s proposal to fully exempt customs duty on critical minerals like Lithium and Nickel would definitely benefit industries in the electric vehicle (EV) battery supply chain in the short term. However, more needs to be done to develop cathode and anode manufacturing factories in India to development the EV ecosystem.
Towards developing the EV ecosystem, Indian government has been facilitating bilateral talks with many countries for acquisition of critical minerals mines for the last 2-3 years.
It is imperative to focus on the end users for critical minerals which are not battery factories but processing companies manufacturing anode, cathode and electrolyte. These companies need to be incentivized so they can further invest in domestic and foreign critical mineral assets.”
Kamal Bali, President & MD – Volvo Group in India: It is one of the most thoughtful, pragmatic and inclusive budgets, that addresses most sections of our society and economy. A growth oriented budget which continues to be large on infrastructure capex, and on schemes for skilling & employment generation, yet fiscally responsible with a good glide path, for controlled inflation & macroeconomic stability.
Mr. Nirmal K Minda, Chairman & Managing Director, Uno Minda: “We welcome the Union Budget 2024-25 with its forward-looking initiatives to boost job creation with focus on urban infrastructure and strengthening the manufacturing sector. The scheme linking job creation to the employment of first-time workers is a significant step towards fostering growth and inclusion.
The incentives for EPFO contributions, benefiting both employees and employers for the first four years, will provide a substantial boost to our efforts in nurturing young talent is noteworthy.
At Uno Minda, we are encouraged by the focus on increasing women’s participation in the workforce. The initiatives to set up hostels and organize women-specific skilling programs are crucial steps towards creating a more inclusive and diverse manufacturing sector. We look forward to the opportunity to engage with the government on this initiative, as empowering the youth and increasing women’s participation in the workforce have always been our key priorities.
Additionally, the credit guarantee scheme for MSMEs in the manufacturing sector will play a crucial role in ensuring sustained growth and stability for small and medium enterprises, which are the backbone of our industry.
The Government’s announcement to exempt customs duty on 25 critical minerals including Lithium and Cobalt will potentially benefit battery manufacturers and thereby the EV ecosystem. The Government has maintained infrastructure capital expenditure of more than Rs 11 lakh crores, provided for setting up industrial parks in 100 cities, and allocated 1.52 lakh crores for the agriculture and allied sectors. These spendings will boost consumption significantly, which will support the lower-middle-income class. This is expected to boost demand for the two-wheeler segment and entry-level cars.
The government’s commitment to fiscal prudence, with a deficit target of 4.9% of GDP, provides a stable macroeconomic environment for businesses to thrive. We are confident that these measures will drive sustainable and inclusive growth, positioning India as a global manufacturing hub.”
Dr. Pramod Chaudhari, Executive Chairman and Founder, Praj Industries: “The Union Budget brings a strong focus on Garib, Yuva, Annadata & Nari which will fructify in all-inclusive growth. Specific Policy document outlining appropriate energy transition pathways to strengthen India’s Energy Security while ensuring balance in the employment, growth, and environmental sustainability is a valiant initiative. Special emphasis on augmenting the service and manufacturing sector, specifically setting up twelve industrial parks with plug-n-play infrastructure will facilitate Viksit Bharat’s mission. Financing scheme for Private sector-driven research and innovation at commercial scale is a welcome step towards knowledge economy.”
Mr. Niranjan Kirloskar, Managing Director, Fleetguard Filters Pvt Ltd: “The Union Budget presented today aligns well with the Government’s vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development.
Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development.
In addition to the above, proposing a climate taxonomy or climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies attractive for FDI. Overall the government aims to balance economic growth with sustainability and inclusivity ensuring long-term benefits across various sectors.“
Rajat Verma, Founder & CEO, LOHUM CLEANTECH: “We applaud the Union Budget 2024 for its visionary focus on energy security & critical materials, among the 9 priority areas. The exemption and reductions of customs duties on 25 critical minerals will contribute to diversifying our energy mix as well as to advanced manufacturing. Similarly, PM Surya Ghar Muft Bijli scheme to install rooftop solar for 1 crore households is a significant step towards mainstreaming sustainable energy.
We are particularly excited about the Critical Mineral Mission, which will enhance production, recycling, and overseas acquisition of critical minerals. The mission’s focus on technology development, a skilled workforce, and suitable financing mechanisms is just what the ecosystem needs right now. The upcoming offshore mineral auction round and the simplification of FDI rules will further attract investments and foster growth in clean energy.
Overall, the budget’s priority on energy transition pathways, employment, and sustainability aligns perfectly with LOHUM’s goals. We look forward to contributing to India’s journey towards a greener and energy-independent future.”
Mr. Uday Narang, Founder and Chairman, Omega Seiki Pvt. Ltd.: “We commend Finance Minister Nirmala Sitharaman and the government for the 2024 Budget, reflecting a visionary approach to the automotive sector. Exempting import duties on critical minerals, including lithium, cobalt and other minerals reduces battery manufacturing costs and makes electric vehicles more affordable. This aligns with Omega Seiki Mobility’s mission to drive sustainable transportation. Investing in skill development, with 1,000 industrial training centres, ensures a skilled workforce for our evolving industry. The focus on women-led development and substantial allocation for schemes benefiting women and girls fosters inclusivity and empowerment. These initiatives will propel the industry towards a greener and more inclusive future. Omega Seiki Mobility is committed to leveraging these opportunities to advance innovation, enhance capabilities, and contribute to the sector’s sustainable growth.”
Ms. Rashi Agarwal, Co-Founder and CBO, Zypp Electric: “The Union Budget’s focus on increasing women’s workforce participation and youth skilling is a significant step towards addressing key barriers women face in the workforce, promoting gender equality and economic empowerment. The youth skilling initiative is a forward-thinking move that will enhance workforce skills and employability, driving industry growth and boosting the gig economy, particularly by increasing two-wheeler and three-wheeler sales beyond metropolitan areas. Abolishing the angel tax is a commendable decision to foster innovation and support the start-up ecosystem. However, we anticipated announcements on the FAME-III policy and special incentives for the EV sector, which weren’t part of this budget. Maintaining policy consistency will be essential to the overall expansion of the electric vehicle market. We expect that the government will provide clarification and lower or eliminate taxes on last-mile delivery services before the present program expires this month.”
Mr Ravi Machani, Co-Founder Investor, Tresa Motors: “With the growing demand for expertise in areas like battery technology and power electronics, the budget’s focus on upskilling programs and industry-education collaboration is crucial in bridging the skills gap. Skilled workers are essential for the EV industry’s growth. It’s an exciting time with abundant opportunities for those willing to learn new skills. The government’s initiative to upskill students over the next five years will ensure a steady supply of talented professionals, driving innovation and sustainability in the EV sector.”
Mr. Rohit Saboo, President & CEO, National Engineering Industries Ltd: “The Budget presented by the Finance Minister is highly growth-oriented, focusing on enhancing the skills and job readiness of the youth. Incentivizing job creation in the manufacturing sector through a scheme linked to employing first-time employees is a positive step. Additionally, exempting customs duty on essential minerals like lithium, cobalt, and nickel will significantly boost India’s electric vehicle sector, reinforcing the country’s commitment to sustainability and a greener future. Overall, this budget reflects a forward-thinking approach, emphasizing sustainable growth and equipping the youth for the evolving global landscape.”
Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship: The recent budget sets a transformative agenda for India’s future, emphasizing green skill development and sustainability. The Finance Minister announced a forthcoming policy document on energy transition pathways that will focus on employment and sustainability, particularly within the solar and wind energy sectors. Central to this initiative is the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar plants and provide free electricity up to 300 units per month to 1 crore households, already attracting 1.28 crore registrations and 14 lakh applications. The budget ensures that the workforce is prepared for the renewable energy sector with training programs designed to equip individuals with the skills to install, maintain, and innovate in solar and wind technologies, creating numerous job opportunities.
Additionally, the budget addresses the need for skilled manpower in both infrastructure and renewable energy sectors through the establishment of a Critical Mineral Mission. This mission will focus on domestic production, recycling of critical minerals, and overseas acquisition of essential assets. By investing in infrastructure projects and developing a skilled workforce, these initiatives aim to create formal job opportunities directly related to infrastructure and renewable energy, as well as in ancillary sectors such as construction, manufacturing, and logistics. Together, these measures are designed to enhance India’s infrastructure, boost renewable energy capabilities, and ensure the nation remains at the forefront of sustainable development and energy security.
Mr. Siddhartha Bagri, Founder & CEO, Pravaig: “It’s a budget that’s one more step in the direction to allow the Indian market to be exploited further, without gaining anything in return. We really need to understand our importance, and how to control our economic borders against the global monopolistic technocracies that now prevail. History is evidence of the same mistake time and again with foreign invaders.”
Shyam Manohar Nayak, Chairman, Sunlit Power: “As someone deeply involved in the energy sector, I’m genuinely excited about the budget’s focus on power and renewables. The plan for a new 2400 MW power plant is a game-changer for our energy landscape. But what really warms my heart is the overwhelming response to the PM Surya Ghar Muft Bijli Yojana – it’s not just a scheme, it’s a solar revolution in the making! The upcoming pumped storage policy is like music to our ears at Arenq. It’s not just about generating power, but storing it smartly too. And let’s not forget the roadmap for hard-to-abate industries – it’s a bold step towards a greener future. This budget isn’t just numbers on paper. It’s about lighting up homes, powering industries, and paving the way for a sustainable India. At Arenq, we’re thrilled to be part of this electrifying journey!”
Kailas Patil, Director, Palladium India: I welcome the Union Budget’s increased capital allocation for the Ministry of Road Transport and Highways (MoRTH) in FY25, rising to ₹2.78 lakh crore from ₹2.70 lakh crore in FY24. This significant investment underscores the government’s commitment to enhancing the nation’s infrastructure and addressing critical transportation needs. This investment will make our roads better, including national highways and expressways.
The Ministry has been allocated ₹ 270 crore in Road Transport and Safety fund for road safety initiatives, marking a 6.5 % increase from the previous years revised allocation of ₹ 256 Crore. This funding is intended to support safety programs, provide relief to accident victims, and enhance the safety infrastructure on national highways. The focus on road safety measures, backed by targeted funding for the installation of intelligent traffic systems and comprehensive safety programs, aligns perfectly with our Road Safety Practice to reduce road accidents and enhance commuter safety.
The expansion of Metro Rail projects and the emphasis on electric vehicle infrastructure further underscore the government’s commitment to sustainable and efficient public transport systems.
The 2024 Budget is a significant step forward, and as industry stakeholders, it is our collective responsibility to leverage these investments to build a better transport system that’s safe, efficient, and works for everyone.
Mr. Harinder Singh, Managing Director & CEO, Yokohama: “We appreciate the Union Budget 2024 for its emphasis on infrastructure development, job creation, and skill enhancement in the manufacturing sector. The Finance Minister’s introduction of programs focused on skilling and offering employment opportunities for youth represents a significant step towards economic advancement. At Yokohama India, we are particularly encouraged by the focus on diversity hiring and incentives for job creation in manufacturing facilities. These efforts resonate with our dedication to fostering a diverse and inclusive workplace, as demonstrated by our 1,000-strong female workforce across our four plants. The government’s backing of internships and skill development initiatives will equip young people and strengthen our industry, driving innovation and growth. This budget signals a strong vision for India’s manufacturing sector and aligns with our mutual objective of building a resilient and inclusive economy.”
Mr. Sameer Aggarwal, Founder & CEO – Revfin Services: “The Union Finance Budget 2024 announced by the Hon’ble Finance Minister lays a comprehensive roadmap towards transforming India into a developed economy. The significant focus on skill development, employment generation, and empowering women through skilling and employability initiatives will undoubtedly foster a more inclusive and robust workforce. The allocation of Rs 2 lakh crore for education, employment, and skilling, corresponding ease of access to loans for higher studies is a step in preparing our youth for future challenges. Further, abolition of the Angel Tax is a significant boost for the start-up ecosystem, paving the way for increased funding and innovation.”
“Moreover, the dedicated support for the rural and agricultural sectors with an allocation of over Rs. 3.5 lakh crore highlights the government’s commitment to equitable development. The provisions for solar rooftop installations, enabling one crore households to obtain free electricity up to 300 units per month, mark a significant step towards reducing dependence on conventional energy sources. This initiative aligns with the government’s climate change commitments and promotes sustainable growth. Also, the waiver of import duties on critical minerals, including lithium, is expected to lower battery manufacturing costs, making EVs more affordable.” added Mr. Aggarwal
Mr. Niranjan Nayak, MD, Delta Electronics India: “The Union Budget 2024-25 presents a compelling vision for a thriving ‘Viksit Bharat, we at Delta are particularly encouraged by the government’s comprehensive approach that prioritizes skilling, infrastructure development, and digital transformation. The focus on creating a skilled workforce through internship programs aligns perfectly with our own commitment to nurturing talent and driving innovation. We also applaud the budget’s emphasis on increasing women’s participation in the workforce. Initiatives like women’s hostels, creches, and skill development programs are crucial steps towards a more inclusive and empowered society. Delta strongly believes in the power of diversity, and these measures will contribute significantly to India’s socio-economic progress.”
“Overall, the budget serves as a catalyst for accelerating our growth trajectory and supporting India’s digital transformation journey. Delta’s focus on emerging technologies and domain expertise aligns seamlessly with the government’s vision for a knowledge-based economy. We are excited about the opportunities presented and confident in our ability to play a central role in shaping a ‘Viksit Bharat.’ We look forward to collaborating with all stakeholders to create a sustainable and inclusive growth ecosystem for India’s future.”
