Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2024-25 on July 23. Touted to be ‘futuristic’, the upcoming budget has already set high hopes for every sector. As the country gears up for budget 24; here are the expectations of the industry:
EV Sector Needs Subsidies, Tax Benefits, Lower GST Rates and More Accessibility to Larger Public
Samarth Kholkar, CEO & Co-Founder, BLive
“As we approach the upcoming union budget in July 2024, we have high expectations from the government, so that there are policies that can significantly drive the adoption of electric vehicles across India. To truly accelerate India’s shift towards electric mobility, we need a robust government policy that can incentivize both manufacturers, individuals, as well as the larger ecosystem. This includes subsidies, tax benefits, lower GST rates for EVs and making EVs more accessible to the larger public. Equally important is the development of a widespread and reliable charging infrastructure. We urge the government to invest in expanding this network, particularly in urban areas and also along the highways. This will address the range anxiety issue that many potential EV buyers face. Additionally, better financing options are crucial to support consumers in making the switch to electric vehicles. Affordable loans and flexible financing schemes can make EVs a viable option for a larger segment of the population. Finally, we must also consider the resale market of electric vehicles. Establishing a strong resale market with standardized valuation models will enhance the customer confidence and support the long-term adoption of electric vehicles. In these areas, we can pave the way for a greener and a more sustainable future in India.”
EV Industry Expects Simplified Tax Structure, Subsidized Financing and Boost to Local Manufacturing
Aryaman Tandon, Managing Partner & Co-Founder, Praxis Global Alliance
“The Electric Vehicle (EV) market in India, though still in its early stages, has seen significant growth, driven by multiple government initiatives. These include tax incentives for EV owners, the establishment of public charging infrastructure, the PLI scheme for local manufacturing, and incentives under the FAME I and II schemes. The FAME II scheme alone supported the sale of over 1.4 million electric two-wheelers (e2Ws), 175,000 electric three-wheelers (e3Ws), and 20,000 electric four-wheelers (e4Ws), increasing EV penetration to over 5 percent for e2Ws and 2 percent for e4Ws.
To reach its ambitious target of 30 percent EV penetration by 2030, continued government support is essential. As EV manufacturers invest heavily in research and development to reduce costs, government assistance is needed to make EVs more affordable and narrow the price gap with internal combustion engine (ICE) vehicles. The industry also hopes that the FAME scheme will expand to include private buses and commercial vehicles (CVs), which have so far been limited to State Transport Undertakings (STUs). Reducing customs duties on imported EV components as well as supporting local R&D in battery technology and other fields, as seen in the last budget, will further accelerate local manufacturing and create jobs. Additionally, subsidizing EV financing and simplifying the GST structure on EV components and batteries will reduce costs and make EVs more accessible to consumers.
As we continue this growth in EV adoption, ongoing government support through EV sales incentive/subsidy for consumers and automakers, simplified tax structure, subsidized financing, and a boost to local manufacturing will help achieve the net-zero emissions goal.”
Budget Should Prioritise Incentivizing Firms to Use EVs for Last-mile Delivery Operations
Dr. Sudhir Mehta Founder and Chairman, EKA Mobility, Pinnacle Industries
“As we approach the upcoming Union Budget, India’s electric vehicle (EV) sector stands at a pivotal juncture. Over the past year, the industry has seen remarkable growth, driven by 100 percent FDI, new manufacturing hubs, enhanced charging infrastructure, and favorable policies and incentives. The government’s proactive stance, particularly through the production-linked incentive (PLI) scheme, has significantly boosted the manufacturing of EVs, components, and batteries.
According to a study by the Centre for Energy Finance (CEEW-CEF), the Indian EV market is poised to become a $ 206 billion opportunity by 2030. This highlights the importance of continued government support to ensure sustainable and rapid growth. The FAME II scheme was instrumental in setting the foundation for EV adoption in India. With its conclusion in March 2024, the interim EMPS scheme’s reduced subsidies have posed challenges for the industry. As a result, we are looking forward to the introduction of FAME III, which will provide subsidies comparable to FAME II, to revitalise the industry and develop charging infrastructure nationally.
Furthermore, the future budget should prioritise incentivizing firms to use EVs for last-mile delivery operations. Developing robust manufacturing capacity to fulfil expanding demand is equally important. Although progressing, India’s EV ecosystem is still in its early phases and requires a competent workforce for production and after-sales services. Large-scale upskilling and reskilling programmes are required to provide the workforce with the skills needed for this changing business. We expect that the budget will include considerable funding for these programmes, allowing India to continue to lead in the global transition to clean mobility. The government can assist unleash the full potential of the EV industry by supporting innovation and infrastructure development, which drives economic growth and environmental sustainability.”
FAME-III Scheme to Receive a Substantial Budget Allocation of INR 10,000 Crore
Aditya Singh, Co-founder and CEO, ZEVO
“The electric vehicle revolution in India has gained remarkable momentum over the past two years, propelled by the government’s visionary FAME-I and FAME-II initiatives. We applaud these policies that have catalyzed the nation’s transition towards clean mobility.
However, as the interim budget for 2024-25 demonstrated, the government’s commitment to bolstering India’s EV ecosystem extends far beyond these initial schemes. The increased focus on domestic manufacturing and charging infrastructure development is a testament to their unwavering support for this critical industry.
While these measures are commendable, we believe there is still room for improvement. One area that requires urgent attention is the inclusion of electric two-wheelers under the FAME subsidy umbrella. Extending subsidies to two-wheelers would not only reduce manufacturing costs but also open up investment opportunities, and encourage consumers to invest in these vehicles.
Initial reports do indicate that the highly anticipated FAME-III scheme is on the horizon, and is to receive a substantial budget allocation of around INR 10,000 crore. This scheme is expected to support electric two, three, and four-wheelers, marking a significant milestone in India’s EV journey. We eagerly await the details of this initiative, as it will lead to a strong transition away from traditional Internal Combustion Engine vehicles and further strengthen the EV ecosystem, paving the way for the next 10 years.”
One Critical Expectation is the Revision of GST for Entry-level Two-wheelers
Pratik Kamdar, CEO & Co-Founder, Neuron Energy
“As we eagerly await the 2024 Union Budget after a historic win for the third term of Modi Government,, the electric vehicle (EV) industry stands on the precipice of transformative growth. The government’s continued emphasis on green mobility is crucial for our sector, and we have high hopes for significant advancements in the forthcoming budget.
The reduction in customs duty on EV parts in the previous budget has already spurred local manufacturing. We anticipate similar progressive measures in the July 2024 budget, which will further encourage domestic production and align with the ‘Make in India’ initiative. One critical expectation is the revision of GST for entry-level two-wheelers and a uniform 5 percent GST on all EV spare parts, which would create a more equitable tax structure, fostering widespread EV adoption.
A cornerstone of our expectations is the unveiling of FAME-III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). Learning from the challenges of FAME-I and FAME-II, FAME-III must adopt a cohesive strategy to accelerate EV adoption. Subsidising financing options will make EVs more accessible, and reducing the GST on batteries by 13% could make EVs significantly cheaper, bringing them on par with conventional vehicles.
The 2024 budget presents an opportunity for the government to solidify India’s position as a global leader in sustainable mobility”
Biofuel Sector Hopes for Clear Policy Frameworks and Incentives for R&D
Kishan Karunakaran, CEO, Buyofuel
“As we anticipate the unveiling of the upcoming budget, we are hopeful for robust support and strategic initiatives from the newly formed government in the biofuel sector. We expect clear policy frameworks, incentives for research and development, and investment incentives to accelerate the adoption of sustainable biofuels. This will not only bolster energy security but also contribute significantly to environmental sustainability and economic growth. We look forward to collaborative efforts between the government and industry stakeholders to unlock the full potential of biofuels in India’s energy landscape.“
Several Key Priorities are Required to Foster a Robust EV Charging Ecosystem
Mayank Jain, Founder & CEO of E-Fill Electric
“These measures, if implemented, will not only boost the EV ecosystem but also align with India’s vision of sustainable and inclusive mobility solutions:
- Increased Allocation for FAME Scheme: E-Fill Electric urges the government to enhance allocation under the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme to accelerate EV adoption and manufacturing capabilities in India.
- Tax Incentives for EV Charging Businesses: Lowering GST on EV charging equipment and operational costs shall ensure affordability and promote widespread deployment of charging infrastructure.
- Investment in Skilled Workforce: E-Fill Electric stresses the importance of investing in training programs to develop a skilled workforce proficient in EV charging installation, maintenance, and repair, vital for sustaining the industry’s growth.
- Streamlined Land Acquisition Procedures: The Company recommends measures to streamline land acquisition procedures for EV charging companies, potentially through designated zones or expedited approvals, to facilitate speedy infrastructure expansion.
- Public-Private Partnerships: E-Fill Electric advocates for incentivising partnerships between public and private entities to expedite the development and deployment of EV charging infrastructure nationwide.
- Research and Development Incentives: The budget should incentivise research and development in EV charging technology, including support for indigenous manufacturing of charging equipment to encourage innovation and self-reliance.
- Subsidies for EV Chargers: E-Fill Electric suggests introducing subsidies or low-interest loan schemes to encourage individuals and businesses to install EV chargers at homes and workplaces, enhancing convenience and accessibility.
- Grid Modernization: Prioritizing grid modernisation projects is essential to accommodate the increased electricity demand from EVs, ensuring reliable and sustainable power supply.”
Expectations are High for Measures that will Support Fintech Industry’s Growth
Sameer Aggarwal, Founder & CEO, Revfin
“As we anticipate the Union Budget from the newly formed Government, India’s electric vehicle (EV) sector beckons a strategic shift towards holistic growth aligned with the net-zero aspirations of Bharat. We anticipate government backing in green initiatives, particularly in the EV sector. With significant investments required for financing EV purchases, fintech companies like ours can play a vital role in facilitating access to funds, thereby promoting sustainable mobility solutions.
Additionally, as the fintech market in India is projected to reach USD 1 trillion by 2030, we look forward to the government introducing clearer regulations and supportive policies in the budget to drive innovation, focusing on streamlined regulatory processes, increased funding opportunities, and enhancements in digital lending, SME financing, and cross-border trade facilitation.
As we approach the new budget, our expectations are high for measures that will support the fintech industry’s growth and contribute towards a greener, sustainable future, fostering economic growth and technological advancement in the EV sector.”
Government Needs to Focus on Creating Policies that are the Same across the Country
Shalya Gupta, CEO, PHF Leasing Limited
“I am expecting the budget to be in sync with the people aspirations from the Government’s unprecedented third term win. The focus, I believe, will be on strengthening the existing policy framework, focus on ease of business and put in the building blocks for a ‘Vikasit Bharat’ by 2047.
Liquidity is a challenge faced by the NBFC segment since public deposits and ECBs have been restricted and there is an appeal to the Government to ensure that systems are put in place for creating a refinancing body for the segment, so that the goal of financial inclusion of all can be met. The Government should also incentivise the NBFC segment for investment in tech, focus on serving the underserved communities and meet the final goal of easier access to credit by all.
In the eMobility space, we hope that Government enlarges the scope of Faster Adoption and Manufacturing of Electric Vehicles (FAME 2), to include smaller players too in the segment. eRickshaws and eLoaders have transformed the Informal Public Transportation Systems in the rural and urban spaces.
Today, we are witnessing a massive growth in the number of e-rickshaws, but not all of these are registered, especially those used for intra-business purposes. The Government should make EV registration and insurance a mandatory requirement. Lowering the registration cost as a policy will promote more people opting for registration.
The Government needs to focus on creating policies that are the same across the country and promote a strong regulatory framework that ensures that the E-Mobility sector continues to grow and contribute significantly to the sustainability goals as well.”
Reducing GST on Li-ion Batteries and Introducing PLI-based Incentives can Stimulate Growth
Deepak Pahwa, Director, Bry-Air
As the government prepares to present the budget, the EV industry is keenly anticipating announcements that will drive growth and innovation. To meet the nation’s goal of becoming net-zero by 2070, accelerating EV adoption is crucial. Extending the FAME subsidy will be a significant step in this direction, helping to boost EV adoption across the country. Additionally, a dedicated budget for Li-ion battery manufacturing, semiconductors, and energy storage systems is essential for developing a robust EV infrastructure. Reducing GST on Li-ion batteries and introducing PLI-based incentives can further stimulate industry growth. Moreover, increased allowances for R&D will foster innovation and open new opportunities for the sector.”
Budget Should Focus on Promoting Extended Producer Responsibility Solutions
Abhishek Agashe, Co-Founder & CEO, Elima
“As we approach the budget announcement, it’s imperative to address the evolving landscape of waste management and the circular economy in India. The upcoming budget holds significant potential to pave the way for a sustainable future, particularly in tandem with the vision of ‘Viksit Bharat 2047.’
Moreover, for our sector to truly thrive and further stimulate growth in the sector, several budgetary measures are essential including the following: –
The budget should focus on promoting Extended Producer Responsibility (EPR) solutions: It being the cornerstone of effective waste management by incentivizing industries to adopt and implement EPR solutions comprehensively. This can be achieved through tax benefits, subsidies, and technical support to encourage compliance and innovation in waste management practices.
We believe to streamline and facilitate an efficient waste management ecosystem, there needs to be substantial investment in infrastructure including promoting public-private partnerships (PPPs), which can harness private sector efficiency and innovation.
We as an industry stakeholder believe, a revision in GST is necessary as the current 18 percent GST on scrap is very high and hampers the sector’s growth. Additionally, the creation of special recycling zones within industrial areas at long lease or subsidized rates will facilitate the building of recycling infrastructure. Providing debt schemes where recycling companies can avail debt at cheaper rates will also significantly boost the industry output.
Additionally, allocating funds for research and development will spur advancements in new materials, recycling technologies, and sustainable practices. The investment can also aid to build modern recycling facilities, and efficient waste collection systems to bolster the closed loop supply chain, which eventually help with powering the circular economy, which is the need of hour.
When we talk about social sustainability & waste management segment, Community engagement and education programs & awareness play a pivotal role. Thus, it should be funded to promote responsible waste disposal and recycling habits. Also supporting MSMEs in the waste management sector with financial and technical assistance will enhance their capacity and create better employment opportunities. Also a robust policy framework with clear regulations and standards for waste segregation, recycling, and disposal, coupled with stringent penalties for non-compliance, will ensure adherence to these standards.
Finally, we cannot overlook the importance of digitalization & leveraging technology. Promoting the use of digital tools, IoT, and AI for waste tracking, monitoring, and management through budget allocations will drive efficiency and effectiveness.
With the recent announcement by MoEFCC to amend the Electronic Waste (Management) Rules to include solar cells and modules in their ambit (MoEFCC 2022), A consolidated nuanced long term roadmap planning is necessary by the Ministry of Renewable Energy, with the aid of which the bottlenecks of solar PV recycling could be streamlined and combated eventually. These steps would also assist in setting up plants and connecting them to the national grid will contribute to sustainable energy production and waste reduction.
Adopting global best practices through international collaborations and knowledge exchange can further help in accelerating India’s progress rate.
In conclusion, the forthcoming budget presents an opportunity to address these key areas and support the burgeoning significant strides in waste management and the circular economy, moving towards a sustainable and prosperous future. We at Elima are committed to contributing to this growth and eagerly anticipate a budget that aligns with these aspirations.”
Sustainable Investments for Micro, Small, And Medium-Sized Enterprises is the Need of the Hour
Anup Garg, Founder and Director, World of Circular Economy (WOCE)
“Government intervention is essential to support the seamless integration of sustainable practices and ensure our global competitiveness. MSMEs face significant challenges, including financial burdens and resource scarcity, making it crucial for the government to prioritize sustainable investments.
With its solutions, WOCE aims to help MSMEs reduce Scope 3 emissions—the indirect emissions generated from supply chains and other business activities. Potential global reduction of Scope 3 emissions by 10–20 percent in the next year is achievable with the right advisory and solutions.
MSMEs are the backbone of the economy, but they often lack clear guidance on sustainability. Our new solutions are designed to meet these needs, offering comprehensive support to help both large corporates and MSMEs comply with ESG requirements, improve sustainability ratings, and ultimately drive global decarbonization.
WOCE’s latest AI-powered platform, esgpro.ai, will enable India Inc to actively participate in the sustainability journey, especially as domestic and global compliances for ESG reporting become more stringent. The right support and ecosystem can accelerate India’s transition towards decarbonization and create a sustainable economy.”
PLI Schemes Aim to Boost Domestic Manufacturing and Create Competitive Edge for Indian Companies
Amit Jain, Global CEO, Sterling and Wilson Renewable Energy
“The green energy sector is witnessing a paradigm shift, driven by strategic government initiatives and innovative financial instruments. The Production Linked Incentive (PLI) schemes aim to boost domestic manufacturing and create a competitive edge for Indian companies in the coming years. This initiative alone could create numerous jobs and drive technological innovation. We hope that the government will revise the GST rates for renewable energy components, reducing it to 5 percent (from current 18 percent), thereby significantly lowering the cost structure for green energy projects. This will also increase the affordability and attractiveness of renewable energy investments, promoting faster adoption across the country. Higher capital expenditure, evidenced by the government’s plan to invest over $360 billion in renewable energy infrastructure by 2030, highlights the commitment to expanding the country’s renewable energy mix and enhancing grid capabilities. Moreover, lower interest rates have facilitated more accessible financing options, helping in decreasing the cost of capital and making large-scale renewable projects more viable. Green bonds have emerged as a powerful tool, with India issuing over $21 billion in green bonds as of February 2023. These bonds are crucial for financing environmentally sustainable projects, aligning investor interests with the global push towards a low-carbon economy. Together, these measures will create a robust and supportive environment for the renewable energy sector, positioning India as a global leader in sustainable energy solutions and driving us closer to our goal of a resilient, green future.”
Government Must Focus on Large-scale Investments in Domestic Solar Manufacturing Facilities
Capt. Ishver Dholakiya, Founder and MD, Goldi Solar
“With climate change as one of the key global concern, we believe the green energy charter will be on priority in the upcoming union budget 2024 as India currently at 150 GW has set an ambitious target of achieving a renewable energy capacity of 500 GW by 2030. Further, with a focus on ‘Make in India’, and improving ease of doing business, India has become one of the preferred destinations for global companies and is on the road to becoming the third third-largest economy in the world with a GDP of USD 5 trillion making green energy a top focus to achieve its Net Zero goals. PM Narendra Modi’s recent address in Russia underlined India’s commitment to renewable energy. In fact, the Government’s focus has been clear with the recent progressive policy and regulatory reforms such as ALMM, PLI scheme, PM Surya Ghar, PM Suryoday Yojana and more.
To further shape the renewable energy sector, the government must focus on large-scale investments in domestic solar panel and component manufacturing facilities. This will not only shorten supply chains and reduce dependency on imports, but also create a cost-competitive advantage. Introducing new skill development programs, incentives, funding, import duties, subsidies, and crafting favourable policies that can boost R&D and innovation will further bolster the sector. We also recommend allocating the unutilized PLI funds towards smaller companies that meet specified criteria to support their entry into module and component manufacturing. This strategic distribution is crucial for boosting the capabilities of MSMEs in the renewable energy sector. Apart from this, budgetary allocations should address the growing need for support towards energy storage projects.”
Establishing Stringent Battery Disposal and Recycling Regulations can Ensure Environmental Safety
Anupam Kumar, CEO, MiniMines Cleantech Solutions.
“As we look towards the upcoming budget, our expectations from the government are aligned with the crucial needs of the clean-tech and battery recycling sector. The importance of recycling spent lithium-ion batteries cannot be overstated.
The global lithium-ion battery market is projected to reach USD 100 billion by 2025, driven by the surge in electric vehicles and renewable energy storage. In India, this presents a massive opportunity to not only lead in clean-tech innovation but also to create jobs and economic growth. However, to truly harness this potential, government support is essential.
We urge the government to provide incentives for developing and deploying battery recycling technologies, reduce import duties on essential recycling equipment, and offer subsidies or grants for setting up recycling plants. Moreover, establishing stringent battery disposal and recycling regulations can ensure environmental safety and drive industry compliance. Ensuring these, we can transform India’s clean-tech landscape and pave the way for a greener, more sustainable world.
By prioritizing Li-ion battery recycling, we can address critical material scarcity, create jobs, and position India as a leader in the circular economy. This budget can be a turning point in transforming our clean-tech landscape and advancing our nation’s commitment to sustainability.
MiniMines stands ready to contribute our expertise and innovative technologies to this crucial endeavor, ensuring India’s greener, more resourceful future.”
Upcoming Budget Presents an Opportunity to Strengthen Waste Management Infrastructure
Sachin Sharma, Founder and Director – GEM Enviro Management Limited
“Building on the momentum of last year’s budget, which prioritized green growth, the upcoming Union Budget presents a significant opportunity to further strengthen India’s waste management infrastructure. However, significant challenges remain. Inadequate waste collection infrastructure and inefficient sorting and recycling systems continue to hinder progress. Valuable materials are still being discarded in landfills instead of being diverted for reuse.
To truly advance India’s circular economy goals, the government must encourage and support waste management agencies that are diligently working in this field. Additionally, streamlining the supply chain for e-waste and plastic waste is essential. This will foster a robust ecosystem where manufacturers, industry players, and recyclers can collaborate more effectively. While Extended Producer Responsibility (EPR) and the Waste Management Rules of 2016 have had a positive impact, more impactful compliance is needed to achieve truly meaningful results.”
Investments Should Focus on Renewable Energy Projects, Green Infrastructure and Sustainable Agriculture
Dr. Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris
“In the Union Budget 2024, it would be important to prioritize initiatives that drive sustainable growth. Investments should focus on renewable energy projects, green infrastructure, and sustainable agriculture. Another good move could be a reduction in the GST levied on renewable energy components. Additionally, provisions should be made to promote skilling and innovation in the field of sustainability.”
Establishing Mandatory Usage Targets for PSUs and Encouraging Blending can Unlock Full Potential of Green Hydrogen
Dhiman Roy, CEO, GreenH Electrolysis Pvt. Ltd.
“The Union Budget 2024 presents a vital opportunity for India to accelerate its transition to a green hydrogen economy. Here are some key points that I hope will be incorporated into the budget:
Incentivize production
- Lowering GST on solar modules, wind turbines and electrolysers from the current rate of 5% could significantly help reduce project costs.
- Reducing customs duties on imported solar cells and modules, and key electrolyser components like stacks, can help enhance the economic feasibility of both solar projects and projects involving green hydrogen.
Demand creation
- Set mandatory targets for central and state government entities to procure green hydrogen for their operations.
- To kick start the process of transitioning to a hydrogen economy, it is imperative to regulate the mandatory blending of a certain percentage of green hydrogen in the fossil hydrogen and natural gas we consume.
- Offer subsidies and tax breaks to industries that switch to green hydrogen for their energy needs.
Other Key Aspects
- Simplify and rationalize the regulatory framework for green hydrogen production, storage, and transportation.
- Allocate funds for training programs to build a skilled workforce for the green hydrogen industry.
By providing incentives for production, establishing mandatory usage targets for PSUs, encouraging blending as well as investing in infrastructure, and promoting research and development, we can unlock the full potential of green hydrogen and achieve our energy transition goals.”
Solar Industry Anticipates Pivotal Measures to Accelerate Renewable Energy Goals
N.P Ramesh, COO and Co-Founder, Orb Energy
“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of INR 78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses. The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth. These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all.”
The Industry Looks Forward to Initiatives that will Boost R&D Investments
Neelesh Talathi, Group CFO, CarDekho Group
“As we approach Budget 2024, we have clear expectations for further support to innovation and competitiveness in the auto industry. Key focus areas include facilitating the creation of EV charging infrastructure, offering tax rebates on EV leasing, and mandating electrical vehicle procurement for government use. Further, the industry looks forward to initiatives that will boost R&D investments, particularly in advanced technologies like AI, batteries, and connected infrastructure. We have witnessed significant contribution by Auto-tech startups and encourage the government to remove the ‘Angel Tax’ and address dual taxation on ESOPs. We hope that this Union Budget 2024 clears all roadblocks and provides rocket fuel to accelerate our leap towards Viksit Bharat.”
Implementation of PLI Schemes for EV Charging Companies is Crucial
Niranjan Nayak, MD, Delta Electronics India
“As we look forward to the Union Budget 2024, our expectations focus on the critical need for transformative reforms in the auto sector, specifically aimed at fostering a green and sustainable energy segment. With a firm commitment to reducing pollution and addressing climate change, we anticipate the government will align its policies with the net-zero goal and sustainable development.
The implementation of PLI schemes specifically for EV charging companies is crucial. Expanding EV infrastructure is essential for promoting widespread EV adoption in India, and financial incentives will significantly boost the growth of our charging network. We also hope for tax reforms that support our industry and encourage consumers to transition to electric vehicles.
Developing a robust EV charging ecosystem, particularly in Tier II and Tier III cities, is vital. Prioritizing open data standards and APIs for charging networks will ensure interoperability and enhance user experience. At Delta Electronics India, we are dedicated to contributing to this transformative journey by providing innovative, reliable, and efficient charging solutions. With supportive budget measures, we can strengthen our charging capacity more accessible for all, paving the way for a sustainable future.”
Government Should Consider Increased Subsidies for Electric Two-Wheelers And Three-Wheelers
Hyder Khan, CEO and Director, Godawari Electric Motors
“With the Central & State Government’s strong push towards a greener future, we have high expectations from the upcoming budget for the EV sector, particularly for those who believe in the ‘Make in India’ model. As we approach the 2024 budget, the electric vehicle industry stands at a pivotal juncture. We are looking for continued support and substantial policy enhancements to accelerate the transition to sustainable transportation.
We urge the government to consider increased subsidies for electric two-wheelers and three-wheelers, as well as incentives for domestic manufacturing and R&D initiatives. Additionally, investments in charging infrastructure and battery technology will be crucial to overcoming existing barriers to widespread EV adoption.
Our vision is to make clean and affordable mobility accessible to every citizen, and with the right fiscal measures, we can make significant strides toward achieving this goal. We are hopeful that the upcoming budget will reflect a strong commitment to fostering innovation and growth within the EV sector, ultimately contributing to a greener and more sustainable future for India.”
Embracing Cutting-Edge Technology like AI and IoT Needs Incentives
ZaibaSarang, Co-founder, iThink Logistics
“The logistics industry has great hopes as the Union Budget 2024 draws near. Important areas of concentration include making large infrastructural expenditures to improve efficiency, such as building multimodal logistics parks and designated freight corridors. For enhanced operations and transparency, embracing cutting-edge technology like AI and IoT needs incentives. Streamlining the GST system and encouraging sustainability by using electric cars and other eco-friendly activities is also essential. Innovation and growth will also be fuelled by assistance for SMEs, startups, and skill development as well as by encouraging public-private collaborations and streamlining regulatory procedures. By addressing these issues, the industry will contribute more to India’s economic development.”
Inclusion in Priority Lending Scheme and Reducing GST for EV Services will Accelerate EV-led Delivery Adoption
Akash Gupta, Co-fou
nder & CEO, Zypp Electric
“To achieve net-zero carbon emissions, the government must focus on maintaining policy continuity. Inclusion in the priority lending scheme and reducing GST for EV services from 18% to 5% will accelerate EV-led delivery adoption. Recognizing last-mile delivery as a distinct sector under logistics policies is essential, given that one-third of shipments fall within this category. Establishing industry standards, supporting gig delivery partners with tailored schemes, and implementing standard operating procedures (SOPs) will enhance efficiency and foster growth in this vital but often overlooked segment of the logistics industry. An extension of the existing EMPS scheme will result in better stakeholder sentiment and investor confidence. With increased government support in driving localisation to cut down costs, infrastructural advancements in terms of establishing a robust charging infrastructure will further aid in boosting customer awareness, focus on job creation will foster strong collaborations and necessitate substantive developments for the EV sector.”
Implementation of National Logistics Policy will Enhance Efficiency, Reduce Costs, And Improve The Global Competitiveness
Varun Gada, Director, LP Logiscience
“We are very optimistic about the future of India under the renewed leadership of Prime Minister Narendra Modi and the newly formed coalition government. The consistent vision and dynamic policies introduced during Prime Minister Modi’s previous tenure have laid a strong foundation for economic growth and infrastructural development. As a warehousing and logistic service provider, we have firsthand experience of the transformative impact of the government’s initiatives which have streamlined operations and reduced logistical bottlenecks. The return of Prime Minister Modi for a third term brings a sense of stability and continuity, which is essential for the sustained growth of our sector. The effective implementation of the National Logistics Policy under this stable leadership will enhance efficiency, reduce costs, and improve the global competitiveness of our logistics network. This, in turn, will further drive the growth of the ‘Make in India’ initiative, fostering a robust manufacturing sector that can compete on the world stage. Moreover, the coalition government’s emphasis on inclusive growth and economic reforms aligns perfectly with the ambitious vision of a $5 trillion economy. With continued policy-driven advancements focused on infrastructure development, digital transformation, and ease of doing business, we anticipate a significant boost in our industry’s capabilities. Together, we look forward to contributing to India’s journey towards becoming a global economic powerhouse, driving innovation, and ensuring that our country remains a vibrant hub for trade and commerce.”
Since sustainable transportation is not the responsibility of one ministry and depends on three pillars of energy efficiency, renewable fuels and electrification, it becomes important to understand the government initiatives and allocation in various sectors including renewable energy, heavy industries, urban development, etc. to understand the impact.