Union Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 in the parliament on 1st February 2024. Here are some Post Budget reactions from the industry leaders:
Mr. Vinod Aggarwal, MD & CEO VECV:
“The interim budget injects renewed vigor into the automotive industry by emphasizing green energy and infrastructure development, with a notable 11.1% increase in capital expenditure. The budget resonates with VECV’s focus on sustainable mobility, addressing challenges in EV charging infrastructure and fostering entrepreneurial opportunities. With our development plans addressing Electric, H2ICE, Fuel Cell Electric and LNG, in addition to CNG and clean Diesels, VECV stands ready to provide tested alternate fuel solutions to customer in line with the government’s Net-Zero vision.”
Mr. Satyakam Arya, – Managing Director & CEO, Daimler India Commercial Vehicles:
“The framework of the interim Union Budget proposed by the Honourable Finance Minister, Government of India, is quite optimistic. The most prominent takeaway for me was the capital expenditure outlay of INR 11.1 trillion towards infrastructure development. I would consider this generous allocation to be indicative of a boom for the commercial vehicles industry in the near term. The Indian CV industry is already on an upward trajectory and this CAPEX outlay has the potential to take CV industry volumes higher in the coming 3-5 years, than the previous benchmark.
While the interim budget sets the tone, I am keenly looking forward to the post-election budget that should encompass a strategy that refines the Indian economy in the next five years, thereby encouraging new investments, boosting employment and providing new business opportunities to various industries. What is also important is a definitive direction on the implementation of the Scrappage Policy, a long term fuel policy for Indian passenger and commercial vehicle industries, charging infrastructure that will pace up the surge of EVs in the country, FAME-III and manufacturing-boosting incentives (PLI), favourable taxation on green vehicles and steps for ease of doing business, to mention a few – these will have a far-reaching effect on the health of the manufacturing industry as we tread on a path that will lead us to realizing the dream of Viksit Bharat in 2047.”
Mr. Anirudh Bhuwalka, CEO, Blue Energy Motors:
“The union budget presented by the honourable Finance Minister has further strengthened the government’s commitment towards long- term social and infrastructure development. It places a significant emphasis on Green Energy, a vital move that aligns with India’s ‘net-zero’ environmental goals, while also boosting sustainable and development.
The government’s comprehensive strategy towards the Electric Vehicle (EV) ecosystem is especially noteworthy. This holistic approach is set to benefit a wide range of stakeholders, including Original Equipment Manufacturers (OEMs), service providers, e-payment companies, and, crucially, the end-users. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem.
Overall, the Union Budget demonstrates a well-rounded vision that promises to propel India towards a more sustainable and economically robust future.”
Ms. Pragya Goyal, CEO & Co-Founder, Vegh Automobiles:
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. As a young female CEO in the EV manufacturing startup, the budget announcements resonate deeply with me. These measures not only empower women in leadership roles but will also contribute to creating a more vibrant and dynamic EV manufacturing landscape in India, presenting a transformative shift for talent acquisition and gender diversity in India’s EV manufacturing ecosystem.
The emphasis on bolstering the EV ecosystem aligns seamlessly with our vision for a sustainable and eco-friendly mobility landscape. The move towards net zero emissions by 2070 is not only a commendable environmental goal but also a strategic boost for the EV sector. The planned expansion of manufacturing will likely lead to increased production capacities, fostering innovation and competitiveness. Moreover, the focus on charging infrastructure development is pivotal, addressing a critical aspect that has often been a consideration for potential EV adopters. As a manufacturer, we anticipate these initiatives will significantly contribute to the growth of the electric vehicle market in India, making sustainable mobility more accessible and attractive to a broader consumer base.
Mr. Hitesh Garg, Vice President, and India Managing Director, NXP Semiconductors:
“We’re thrilled about the Budget 2024 giving a strong push to the semiconductor and electronics manufacturing sector in India. The government’s substantial boost in funding for semiconductors, along with the increased total PLI allocation under MEITY, shows a strong commitment to fostering a thriving ecosystem for technological progress.
The semiconductor industry is at the heart of innovation, and the 130 percent rise to Rs 6,903 crore in the budgetary allocation for its development, including support for capex and research, is an important step. This initiative aligns with India’s aspirations to emerge as a prominent player in the global electronics manufacturing landscape. The government’s emphasis on fostering a conducive environment for research and development perfectly mirrors the semiconductor industry’s trajectory.
I believe that these strategic moves will not only accelerate the growth of the semiconductor industry but also elevate India’s position as a preferred destination for the electronics system design and semiconductors. We are excited about these opportunities and look forward to collaborating with stakeholders in the industry. The collaborative spirit and proposed incentives position India as a global semiconductor hub, solidifying its commitment to cutting-edge technological advancements.”
Mr. Akash Gupta, Co-Founder and CEO, Zypp Electric:
We applaud the government’s commitment in the budget to nurturing the Electric Vehicle (EV) ecosystem. The allocation of resources towards the development of a robust infrastructure signifies a pivotal moment for our nation. This budget not only encourages entrepreneurship but also opens doors for a multitude of vendors, providing ample opportunities for supply and installation services. The emphasis on supporting manufacturing and charging infrastructure not only aligns with our company’s mission but also ensures a sustainable future for the entire EV industry. Additionally, the focus on creating employment opportunities for the youth, particularly those with technical skills in manufacturing, installation, and maintenance, will catalyze innovation and growth. We look forward to collaborating with the government in realizing this shared vision and contributing to the electrifying transformation of our nation’s mobility landscape.
Mr. Hyder Khan, CEO of Godawari Electric Motors:
Our government is committed to advancing sustainable development by enhancing and strengthening the electric vehicle (EV) ecosystem. Through robust backing of manufacturing and charging infrastructure, they have reinforced the groundwork for a more environmentally friendly future. The focus on creating accessible and eco-conscious mobility solutions underscores the significance of this announcement in the budget. These efforts will enhance EV adoption, paving the way for a cleaner, more interconnected future. The details of this announcement in the forthcoming budget will play a crucial role in steering the country’s net-zero agenda in a positive direction.
Mr. Sameer Aggarwal, CEO & Founder – Revfin Services:
“The vote-on-account and interim budget presented by the Hon’ble Finance Minister, signals towards a transformative era for the nation. The commitment to fortify the Electric Vehicle (EV) ecosystem and support manufacturing and charging infrastructure aligns with global environmental goals, positioning India as a leader in widespread sustainable mobility adoption. Continued focus on the rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth. Skill India Mission’s success in training 1.4 crore youth strengthens the workforce for evolving job demands.”
Mr. Benjamin Lin, President, Delta Electronics India:
The Budget 2024 brings a significant boost to the future of mobility. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. The encouragement for greater adoption of e-buses in public transport networks, coupled with the implementation of payment security mechanisms, not only propels environmental sustainability but also sparks innovation and economic prosperity. This strategic move not only aligns with our values at Delta Electronics India but also signifies a significant leap towards a greener and technologically advanced future for the entire industry.
Mr. Niranjan Nayak, MD, Delta Electronics India:
I welcome the strategic initiatives laid out in the 2024 budget. The government’s strong support for the e-vehicle ecosystem, including manufacturing, charging infrastructure, and incentivizing e-bus adoption, is likely to bring about important changes in our industry. Additionally, the introduction of secure payment mechanisms for e-buses addresses a crucial obstacle to public acceptance. At Delta Electronics India, we understand the transformative potential of e-mobility and are prepared to use our global expertise and local knowledge to accelerate its development. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are excited to be part of this journey.
Mr. Aman Singh, Co-founder and Head of Analytics, Intangles:
“The budget for 2024 is a significant stride forward for the automotive sector, particularly for the EV ecosystem. The government’s commitment to expanding India’s electric vehicle charging infrastructure and the approval of numerous vendors for the installation of EV charging points nationwide reflects a forward-thinking approach. This move not only propels the EV ecosystem but also opens numerous entrepreneurship opportunities, promising a surge in employment, especially for the technically skilled youth. The focus on innovation and the support for startups through various schemes, coupled with the provision of a substantial corpus for long-term, low-interest financing, is set to catalyze a transformative era for entrepreneurial ventures. We are excited and geared up to be a part of this golden era of technological and sustainable advancement.”
Ms. Rashi Agarwal, CBO & Co-Founder, Zypp Electric:
As a woman entrepreneur, the post-budget focus on empowering women is truly uplifting. The allocation of thirty crore Mudra Yojana loans reflects a powerful endorsement of our capabilities. The government’s commitment to ease of living and preserving women’s dignity has led to a commendable twenty-eight per cent rise in female higher education enrolment and forty-three per cent in STEM courses over the past decade. These initiatives are already making a substantial impact on women’s workforce participation. Additionally, I applaud the government’s forward-looking stance in supporting the electric vehicle (EV) sector. This move not only aligns with global sustainability goals but also presents immense opportunities for women entrepreneurs to contribute to a greener, technologically advanced future. The budget’s dual focus on women’s empowerment and the EV sector is a testament to our nation’s commitment to inclusive progress and environmental sustainability.
Dr. Pramod Chaudhari, Executive Chairman, Praj Industries :
“‘Amritkal as Kartavyakal’ quoted by Hon. Finance Minister during Interim Budget 2024 is very opportune for realizing the vision of Vikasit Bharat by 2047. Continued emphasis on Green Growth during this budget augers very well for achieving the Net Zero Goal by 2070. The announcement of a new scheme for propagating Bio-Manufacturing to introduce environment-friendly alternatives on regenerative principles is a welcome step for the inclusive growth of the farming community. This will further boost Bioeconomy’s contribution to the nation’s GDP in times to come.”
Quote of Mr. Shishir Joshipura, CEO & MD, Praj Industries:
“The Interim Union Budget 2024 will create a conducive environment for business growth, innovation, and socio-economic development. The announcement of financial assistance for biomass collection and equipment as a part of the Budget is an excellent step that will help build a resilient feedstock supply chain. This will ensure the availability, accessibility, and affordability of bio-based feedstocks, inspiring investors’ confidence in setting up Bio-refineries. Continued focus of leveraging captive resource i.e Bioenergy in the energy mix is aligned with vision of Energy Independence by 2047. These green growth initiatives will facilitate energy security while achieving the climate action objectives of the nation.”
Mr. Sumit Aneja, Founder, Speedways Electric:
“In the pursuit of a greener and more sustainable future, the greater adoption of e-buses within public transport networks emerges as a pivotal step. Not only do electric buses significantly reduce carbon emissions, but they also contribute to cleaner and quieter urban environments. To fortify the e-vehicle ecosystem, it is essential to focus on infrastructure development, battery technology advancements, and supportive policies.
One critical aspect that requires attention is the implementation of a robust payment security mechanism. As e-buses become more prevalent, ensuring secure and efficient payment systems will be vital for user convenience and trust. Integration of secure digital payment methods, encrypted transactions, and real-time monitoring will not only streamline the payment process but also safeguard user data.
As we reflect on the budget 2024, it is encouraging to witness a commitment to fostering sustainability and technology-driven initiatives. The increased allocation for e-mobility infrastructure, research, and development signifies a forward-looking approach. This budget reflects the government’s dedication to steering the nation towards a cleaner, more energy-efficient future. Together, with a strengthened e-vehicle ecosystem and enhanced payment security mechanisms, we can accelerate the transition towards sustainable urban transportation, benefitting both the environment and the well-being of our communities.”
Manish Bhatnagar, Managing Director at SKF India:
“The budget reflects a comprehensive vision for a ‘Viksit Bharat’ and lays a strong foundation for sustained growth. The strong focus on electric mobility, underscored by the robust expansion of the electric vehicle ecosystem, aligns perfectly with our commitment to sustainability. The introduction of innovative schemes like bio-manufacturing and bio-foundry reflects a positive stride towards green growth and environment-friendly alternatives in the manufacturing sector. The emphasis on inclusive development, social justice, and economic empowerment aligns with the ethos of ‘Sabka Saath, Sabka Vikas.’ At SKF India, we welcome this move and look forward to contributing to the nation’s progress and leveraging the opportunities presented by these strategic initiatives.”
