Union Budget 2023 | 'Thrilled to see govt's focus on green growth of automobile sector'

Union Finance Minister Nirmala Sitharaman presented the last full budget of the second term of the Narendra Modi government in Parliament on February 1. Here's what experts, industry insiders have to say about this year's Budget. Stay tuned to DH for the latest updates!

'Custom duty reduction on Lithium batteries will facilitate faster adoption of EVs'

“We congratulate the government on coming up with yet another progressive growth led budget with a huge emphasis on sustainability and significantly increased capex outlay on energy transition which will spur investments and skill development in the green economy. Steps taken towards enabling ease of doing business should catalyse much desired private capex cycle. Initiating viability gap funding for battery energy storage systems will kickstart creation of this critical infrastructure. Custom duty reduction on Lithium batteries will facilitate faster adoption of EVs."

-Sumit Mittal, COO & Director of Finance, GreenCell Mobility.

'Budget displays positive approach towards decreasing overall life cycle cost of EVs'

"This Budget has primarily focused on reducing the battery cell cost from the Electric Vehicle industry perspective. While the FM has allowed concessional custom duty of 5% on battery cells for another financial year, she has waived the custom duty on import of capital goods/machinery for manufacturing of Lithium-ion cells which is aimed at encouraging domestic manufacturing of cells in the medium term. This is a very positive and effective approach towards bringing down the overall life cycle cost of EVs. The industry was expecting a lot more from the FM, but given the balancing act approach adopted by her, some of the other policy supports for EV industry may have to wait for some time."

- Ashish Bagadia, Partner/ Corporate Finance and Investment Banking,BDO India

'Govt's green signal to green growth will give edge to EV manufacturers'

'The Union Budget2023-24 will pave the way for the green empowerment of the country and reflects the progressive attitude of the government toward sustainable development. We welcome the vision of the government of India in establishing and boosting the focus on green growth. As India’s new budget envisions 7 priorities, green growth is among the top priorities of it. In its budget, the government has announced a large sum of Rs 35,000 crore to be allocated towards achieving the net zero goal and energy transition. The government has set its target to reach green hydrogen production of 5 MMT by 2030. This will encourage the private sector involved in green renewable energy-based products to expand their business and invest more in the business of green energy. The government’s green growth efforts will help in reducing carbon impact, promote green alternatives and create space for employment. It will enable the use of green-based products at a larger scale among the common public. The government’s green signal to green growth will give an edge to companies like electric vehicle manufacturers to market their products and enhance the opportunities for industry players to cater to their target audiences. This will also help in meeting the carbon offset program of various companies in the green sector.”

-Akshit Bansal, Founder & CEO of Statiq

'Budget shows commitment of Centre to achieve net zero emission goal of 2070'

"The Union Budget clearly shows the commitment of the central government to achieve the net zero emission goal of 2070. The budget expectations that we had from EV industry perspective will completely be met if the implementation of the budget is done properly at grass root level. Both the incentives and packages defined for Agritech and EV related innovations in the country are truly promising to expect high growth from the rural to the urban areas. Startups/MSME's working in these two areas are the real catalyst for the growth of the entire nation, so it will be interesting to look at how smoothly they are provided access to the benefits announced in todays budget. After listening to the budget today, we can say that, India as a nation is truly spearheading the innovation required to fight climate change in all sectors and it is hardly a matter of few years now, when India will be know as the leader in making the right efforts to save the planet from the climate change challenges it is going through, exactly like now it is known for saving the world from the threat of covid by supplying the vaccines."

- Kaustubh Dhonde, Founder and CEO of AutoNxt Automation

Credit Wise Capital founder is 'thrilled to see govt's focus on green growth of automobile sector'

“We are thrilled to see the government's focus on the green growth of the automobile sector in the latest financial budget. The allocation of funds towards the development of electric vehicles by reducing taxes on machinery needed to produce lithium ion batteries and the incentives provided to the purchase of electric two-wheelers will not only benefit the environment but also encourage more people to shift towards sustainable modes of transportation."

Aalesh Avlani, Founder, Credit Wise Capital.

A continuation of the FAME II subsidy or introduction of a FAME III subsidy will greatly benefit EV adoption. If this subsidy were to be abruptly discontinued in 2024, it will create a demand shock: Anirudh Ravi Narayanan, CEO, Bharat New Energy Company

"There is a perception that FAME II subsidy has become risky to pass-on to customers since subsidies are being withheld, updates are being announced with a short time fuse, and there are potentially interest groups affecting the industry.

Unless the government addresses these points, FAME may end-up getting viewed by vehicle makers as a "bonus" if it comes, and so there may not be an end-customer benefit"