Finance minister Nirmala Sithraman recently announced the union Budget for the year. There were a lot of highlights of the reforms that can possibly aid budding industries in different dynamics grow and prosper, similar had been governments outlook towards the EV Sector In India.
As per Finance Minister Sitharaman Agriculture, MSME’s Investments and Exports would be the powerful engines that would drive the nation towards higher echelons of growth and development powered by the fuel of government reforms. To facilitate the better growth of Auto Industry plans such as Export Promotion Mission as well as the enabling reforms for EV manufacturing would be initiated.
Official Statement
As per the statement From Financial Minister Sitharaman a proposal to add 35 additional capital goods for EV Battery manufacturing and 28 additional capital goods for mobile phone battery production would be initiated.
“I propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing. This will host domestic manufacture of lithium-ion batteries in the nation, according to Sitharaman.
Beyond the above additions the changes also indicate towards the approach of Government to facilitate Easy EV vehicle and EV component production. Exemption of BCD on several capital goods required for manufacturing electric vehicle batteries will be brought down as well.
Export Promotion Mission complemented by the easy production enabling schemes from the Government would lead India to gain worldwide prowess in EV vehicles and EV component manufacturing.
Increased Disposable Income –
The official statement “I am now happy to announce that there will be no Income Tax Payable up to income of 12 lakh rupees,” said by Sitharaman has become the reason for the joy of all middle class salaried people.
The fact that the tax slabs have been shifted to provide more disposable income mean that EV vehicles sales could pick up in the near future. The new reforms have showcased a government that is ready to be conducive to EV battery, vehicle and Component production in India.
Plans to Become The Production Hub
With such conducive structure for EV manufacturing India aims to bring in global manufacturers to manufacture in India and sell world over. Manufacturers such as Suzuki, Hyundai and Bajaj have already been pioneering in the same production method in which the products produced in India are sold world over. A welcome step to help the nation improve its place as a global manufacturer for EV Technologies.
