‘Localisation for EV segment should be considered’ 

Budget 2021 | ‘Localisation for EV segment should be considered’ 

Pankaj Tiwari. Credit: Nexzu Mobility

By Pankaj Tiwari  

For the automobile and other manufacturing sectors, the Finance Minister could consider provisions that promote the cause of increasing elements of localisation, especially for the electric vehicle segment, ancillaries and component manufacturers to stimulate investment. 

India, as a resilient economy, has been quick to bounce back from difficult situations - the period of sub-prime financial crisis, the global recession and now the Covid-19 that brought with it prolonged lockdown, affecting the economy.  

People belonging to all walks of life and business leaders from across sectors including retail, manufacturing, FMCG, travel, aviation, automobile, among others are eagerly awaiting the Union Financial Budget. 

In the upcoming Budget the Finance Minister should consider announcing allocations that stimulate job creation, ease of doing business, speed up domestic manufacturing capabilities (Atmanirbhar Bharat) by incentivising R&D initiatives taken by companies and most importantly relaxing the prevailing tax regime so as to cushion the corporates gradual return to normalcy. 

Different sections of the people see avenues of growing consumerism by increasing liquidity and cash in hand, where-in further relaxation in income tax slabs will help to promote buying trends.  

A lot will depend on budgetary allocations that the Finance Minister has for rural India, as tier-2 and tier-3 regions are that need support, and also serve as key consumer markets that have potential to drive economic growth.  

(The author is Chief Marketing Officer, Nexzu Mobility)