Budget 2024: Govt to boost EV Ecosystem, introduce Bio-Manufacturing Scheme
In a significant move to enhance the electric vehicle (EV) ecosystem and foster environmentally friendly development, the government has revealed its plans to amplify and fortify the manufacturing and charging infrastructure for EVs. Finance Minister Nirmala Sitharaman announced these initiatives while presenting the Interim Budget in the Lok Sabha. Emphasizing the government's dedication to promoting green growth, Sitharaman unveiled a new scheme for bio-manufacturing, focusing on encouraging sustainable practices. She underscored the government's commitment to expanding and reinforcing the EV ecosystem through support for manufacturing and charging infrastructure, recognizing the pivotal role of EVs in the nation's sustainable development agenda.
Furthermore, Sitharaman reiterated the government's dedication to implementing economic policies conducive to sustaining growth and fostering investment. "Our government will adopt economic policies that will sustain growth and contribute to powering investment and fulfilling aspirations," she affirmed, outlining the administration's overarching vision for economic prosperity. The budget presentation emphasized the government's dedication to infrastructure development. Finance Minister Nirmala Sitharaman declared, "All types of infrastructure – digital, social, physical – are being constructed at an unprecedented pace." This highlighted the comprehensive strategy towards improving infrastructure across diverse sectors.
India's strides in developing its EV charging infrastructure were acknowledged, though challenges were recognized. Despite progress, the ratio of EVs to charging stations remains imbalanced, with industry experts pointing out a current ratio of almost 9:1, whereas the optimal ratio is considered to be 4:1. This highlights the imperative for further expanding the charging infrastructure to facilitate the shift towards electric mobility. Industry stakeholders appreciated the government's forward-thinking approach to the automotive sector, seeing it as aligned with national objectives like promoting self-reliance (Atmanirbhar Bharat) and moving towards achieving net-zero carbon emissions by 2070.
Ankit Kumar, CEO of Skye Air Mobility, commended the budget for extending concessional tax rates for new manufacturing units, which he believes will spur innovation and enhance competitiveness. “The India Budget 2024 heralds a powerful catalyst for our nation’s economic advancement. By extending concessional tax rates for new manufacturing units, fostering innovation receives a significant impetus. The strategic emphasis on training for MSMEs not only enhances competitiveness but also nurtures a vibrant entrepreneurial ecosystem, propelling Bharat towards global leadership", he said.
The budget also received appreciation for its initiatives aimed at fostering gender diversity and empowering women entrepreneurs. Pragya Goyal, CEO & Co-Founder of Vegh Automobiles, lauded the infusion of loans under the Mudra Yojana for women entrepreneurs, citing its potential to bolster the EV manufacturing landscape and promote gender diversity. “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 percent surge in female enrolment in higher education, particularly in STEM courses, fortifies the talent pool for the EV sector", she said.
Chakravarthi C., Managing Director - Quantum Energy said, "The interim budget might not have specified any policy or allocation towards EV sector, however, it did mention the intention to promote EV in public transportation. Additionally, what we need right is to strengthen the EV ecosystem holistically for which budget indicated towards policies and measures that will be undertaken to support manufacturing and charging infrastructure. Clearly, EV stands in the priority list of the government and we can expect the upcoming FAME policy and August session to encompass all the particulars".
