The 2019 budget has something to offer to everyone, though the auto industry would have wished for more for the corporate sector in the form of corporate tax levies and concessions/subsidies for research and development in the field of electric vehicles (EVs) and electric vehicle components, P Balendran, executive director, MG Motor India, said.
“We would have also hoped for more clarity with regard to infrastructure for the charging around electric vehicles but expect that more announcements will come under the upcoming Fame II scheme to be announced by the government soon,” Balendran said.
He said that with a focus on Make in India, it was also imperative for the government to generate skill enhancement opportunities in the field of EVs, especially lithium-ion batteries and related components. “Although the recently announced cut in customs duty on certain electric vehicle components from the earlier 15-20 per cent to 10-15 per cent at present will augur well for EVs during the longer term, there could have been more done in this regard to make India adopt EVs at a faster rate,” he said.
Pointing out that leading economies across the globe have been banking upon electric vehicles, in order to achieve sustainable development, Balendran said, “To the same end, the interim budget announcements favouring electric vehicles with respect to renewable energy are encouraging. We believe that with the government promoting electric vehicles and use of renewable energy sources, India is on the right track as far as one of the most high-potential manufacturing hubs for the EVs in the long-term. Consumers, on the other hand of the spectrum, will be more likely to adopt electric vehicles, inspired by the government’s vision of a Clean and Green India.”
"With greater purchasing power in the hands of people, it will boost consumption of big-ticket assets and goods like autos and real estate as well. With abolition of capital gains on additional property, the consumer will breathe a sigh of relief while this will also generate business activity in the real estate sector which was impacted by the slowdown in recent past. The government’s continued focus on construction of 27 km highways per day will also augur well to provide mile-to-mile connectivity and further boost transportation sector."
Balendran also welcomed the focus on Artificial Intelligence, as India gears up to take the global stage in technology and innovation.
“Overall, the interim budget announced ahead of the upcoming elections gives a perfect balance by doling out concessions for the common man, without compromising on macro-economic factors underpinning the Indian economy,” he said.
