Amid rising buzz around the upcoming Union Budget for the year 2023-24 which will be presented by Finance Minister Nirmala Sitharaman in the Parliament on February 1, people’s expectations surrounding the budget are also soaring high. Like many other sectors, the Indian automotive industry also anticipates many initiatives which will aid the sector’s growth in the upcoming Union Budget 2023.
According to industry experts, the upcoming budget is expected to hold great significance for the Indian auto industry, especially for the electric vehicle (EV) segment. With Modi Government’s intensified focus on climate change-related issues, the Indian automobile market also witnessed exponential growth in overall EV sales.
Higher tax incentives for spending towards R&D-
One of the key expectations is a budget boost for the Research & Development (R&D) for Green technologies to support net zero carbon emissions. This will further boost the production of more advanced and made-in-India automobiles.Higher capital subsidies for setting up of charging infrastructure-
The industry anticipates enhanced support for battery charging infrastructure in India. Though there has been a significant surge in EV sales, this also brings in various challenges. Of one the biggest challenges include the lack of charging infrastructure which not only dissuades potential customers but is also a point of concern for existing customers.Reduced and uniform GST rates on auto components-
Currently, manufacturers have to pay 18 and 28 percent GST for EV goods. Due to this one of the key expectations from the budget is to fix the GST rate afresh and to bring it into the lower tax bracket. The reduction will greatly support the local manufacturers to invest in newer and advanced technologies for enhanced mobility offerings, which will highlight them even at the global level. These changes in GST are expected to offer huge assistance and boost the fast-growing market.
