As the sun sets on the fiscal horizon, India’s Finance Minister Nirmala Sitharaman presented the Interim Budget 2024–25, revealing a verdant vision for the future.
At the heart of this financial blueprint, the Interim Budget 2024–25 highlighted an electrifying promise towards welcoming a new era for electric vehicles (EVs).
Focus on Renewable Energy in Interim Budget 2024–25
According to the Finance Minister, “Our Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanism.”
Talking about Green Economy, Finance Minister said “Towards meeting our commitment for ‘net-zero’ by 2070, the following measures will be taken.
- Viability gap funding will be provided for harnessing offshore wind energy potential for initial capacity of one Giga-watt.
- Coal gasification and liquefaction capacity of 100 MT will be set up by 2030. This will also help in reducing imports of natural gas, methanol, and ammonia.
- Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be mandated.
- Financial assistance will be provided for procurement of biomass aggregation machinery to support collection.”
“For promoting green growth, a new scheme of bio-manufacturing and bio-foundry will be launched. This will provide environmentally friendly alternatives such as biodegradable polymers, bio-plastics, biopharmaceuticals, and bioagricultural inputs. This scheme will also help in transforming today’s consumptive manufacturing paradigm to the one based on regenerative principles.”
Addressing the Lok Sabha, the finance minister talked about the recently announced Pradhan Mantri (PM) Suryodaya Scheme.
Sitharaman in her budget speech said, “Through rooftop solarization, one crore households will be enabled to obtain up to 300 units free electricity every month. This scheme follows the resolve of Prime Minister on the historic day of consecration of Ram Mandir in Ayodhya.”
“Following benefits are expected.
- Savings up to fifteen to eighteen thousand rupees annually for households from free solar electricity and selling the surplus to the distribution companies;
- Charging of electric vehicles;
- Entrepreneurship opportunities for a large number of vendors for supply and installation
- Employment opportunities for the youth with technical skills in manufacturing, installation and maintenance”
Highlights of Budget 2024–25
Financial Projections and Fiscal Strategies
- The forecast for gross borrowing in FY25 is set at INR 14.13 trillion, marking a decline from the previous fiscal year.
- A significant push towards fiscal consolidation has been initiated, with a fiscal deficit goal of 5.1% for FY25, surpassing the anticipated 5.3%. This follows the achievement of a 5.8% fiscal deficit in FY24, better than the expected 5.9%, thanks to enhanced revenue collection.
Agriculture and Self-Sufficiency
- The budget champions the advancement of local oilseed varieties such as mustard, groundnut, and sesame to curb India’s reliance on imported cooking oil, which currently stands at 60% of consumption, costing over INR 1.5 trillion annually.
Housing and Healthcare Initiatives
- A new housing scheme targets the middle class, renters, slum dwellers, and residents of unauthorized colonies, enabling them to purchase or construct homes.
- Expansion of medical colleges, leveraging existing infrastructure.
- Extension of Ayushman Bharat healthcare coverage to all Anganwadi workers and helpers.
Agriculture and Investment
- Enhanced efforts to increase farmers’ incomes.
- Encouragement of private sector investment in post-harvest processes.
Tax and Policy Reforms
- Announcement of tax dispute resolution with the withdrawal of outstanding disputed demands, benefiting 1 crore taxpayers.
- Maintenance of current tax rates in the interim Budget 2024, with certain benefits for start-ups and tax exemptions for specific IFSC units extended until March 2025, despite expectations for changes.
Strategic Horizons: Business Leaders’ Take on the 2024–25 Economic Blueprint
Kartikey Hariyani, Founder and CEO, ChargeZone said, “We wholeheartedly support the Government’s vision outlined in the Interim Budget 2024, reflecting a strong commitment to the electric vehicle (EV) ecosystem. ChargeZone is perfectly aligned with this vision, emphasizing the need to fortify both EV manufacturing and charging infrastructure. The encouragement of e-buses in public transport networks, along with the implementation of a robust payment security mechanism not only accelerates the adoption of sustainable transportation, but also propels the growth of the EV charging sector.
We are glad to be able to play a key role in steering this positive transformation by actively contributing to the manufacturing, installation, and maintenance of EV charging stations across the country. As part of the National Highway Electrification Scheme, we’ve also been electrifying state and national highways by installing fast chargers for seamless and accessible charging for EV owners, demonstrating our vision of accelerating India’s transition to green mobility.”
Rohit Saboo, President & CEO, National Engineering Industries Ltd. mentions “The Interim Budget presented today highlights the government’s intent to continue its focus on inclusive and sustainable development. The government stands committed with a special emphasis on empowering the poor, women, youth, and farmers and is focused on driving policies that resonate with their aspirations.
As a responsible brand focused on implementing sustainability, we are pleased to see the government’s focus on promoting electric vehicles (EVs) which is a visionary step towards environmental sustainability as well as overall economic growth. Additionally, the commitment towards expanding the e-vehicle ecosystem brings an exciting prospect for the youth, which will create employment opportunities that align with the demands of the future. The introduction of biomanufacturing and bio-foundry schemes is also a welcome move that will be a great alternative to bio-degradable production. Overall, it is a balanced budget despite being interim. It addresses the immediate needs while laying a chart for long-term economic resilience.”
Dinesh Arjun, Co-founder and CEO, Raptee Energy said, “Various initiatives announced by the FM today clearly demonstrate the government’s intention to further accelerate EV adoption and also generate significant employment opportunities for the youth. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’ , the biggest barrier for EV adoption in our country. The government’s support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles”.
Chakravarthi C., Managing Director, Quantum Energy expresses,
“The electric vehicle industry has exciting potential for the Interim Budget of 2024. A big step towards a sustainable future has been taken by the government’s commitment to developing the EV ecosystem, assisting with production, and funding charging infrastructure. In addition to being in line with our environmental objectives, the focus on promoting e-buses for public transport and the implementation of a bio-manufacturing programme open doors for creative, sustainable alternatives. Furthermore, a comprehensive strategy is shown by the actions taken to harness offshore wind energy and encourage the gradual integration of biogas into natural gas. This budget not only jumpstarts our path to “net-zero,” but it also ushers in a new era of environmentally friendly growth and conscientious manufacture for Revamp Moto and the entire EV industry.” views Pritesh Mahajan, Co-Founder & CEO of Revamp Moto.
Akash Gupta, Co-Founder and CEO, Zypp Electric said,”We applaud the government’s commitment in the budget to nurturing the Electric Vehicle (EV) ecosystem. The allocation of resources towards the development of a robust infrastructure signifies a pivotal moment for our nation. This budget not only encourages entrepreneurship but also opens doors for a multitude of vendors, providing ample opportunities for supply and installation services. The emphasis on supporting manufacturing and charging infrastructure not only aligns with our company’s mission but also ensures a sustainable future for the entire EV industry. Additionally, the focus on creating employment opportunities for the youth, particularly those with technical skills in manufacturing, installation, and maintenance, will catalyze innovation and growth. We look forward to collaborating with the government in realizing this shared vision and contributing to the electrifying transformation of our nation’s mobility landscape.”
Rashi Agarwal, CBO & Co-Founder, Zypp Electric , “As a woman entrepreneur, the post-budget focus on empowering women is truly uplifting. The allocation of thirty crore Mudra Yojana loans reflects a powerful endorsement of our capabilities. The government’s commitment to ease of living and preserving women’s dignity has led to a commendable twenty-eight per cent rise in female higher education enrolment and forty-three per cent in STEM courses over the past decade. These initiatives are already making a substantial impact on women’s workforce participation. Additionally, I applaud the government’s forward-looking stance in supporting the electric vehicle (EV) sector. This move not only aligns with global sustainability goals but also presents immense opportunities for women entrepreneurs to contribute to a greener, technologically advanced future. The budget’s dual focus on women’s empowerment and the EV sector is a testament to our nation’s commitment to inclusive progress and environmental sustainability.”
Benjamin Lin, President, Delta Electronics India, expresses,” The Budget 2024 brings a significant boost to the future of mobility. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. The encouragement for greater adoption of e-buses in public transport networks, coupled with the implementation of payment security mechanisms, not only propels environmental sustainability but also sparks innovation and economic prosperity. This strategic move not only aligns with our values at Delta Electronics India but also signifies a significant leap towards a greener and technologically advanced future for the entire industry.”
Niranjan Nayak, MD, Delta Electronics India, welcomes the budget, “I welcome the strategic initiatives laid out in the 2024 budget. The government’s strong support for the e-vehicle ecosystem, including manufacturing, charging infrastructure, and incentivizing e-bus adoption, is likely to bring about important changes in our industry. Additionally, the introduction of secure payment mechanisms for e-buses addresses a crucial obstacle to public acceptance. At Delta Electronics India, we understand the transformative potential of e-mobility and are prepared to use our global expertise and local knowledge to accelerate its development. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are excited to be part of this journey.”
Hyder Khan, CEO of Godawari Electric Motors discusses, “Our government is committed to advancing sustainable development by enhancing and strengthening the electric vehicle (EV) ecosystem. Through robust backing of manufacturing and charging infrastructure, they have reinforced the groundwork for a more environmentally friendly future. The focus on creating accessible and eco-conscious mobility solutions underscores the significance of this announcement in the budget. These efforts will enhance EV adoption, paving the way for a cleaner, more interconnected future. The details of this announcement in the forthcoming budget will play a crucial role in steering the country’s net-zero agenda in a positive direction.”
Rohan Shravan, Founder and CEO of Tresa Motors said, “Tresa Motors commends the Interim Budget 2024 for taking strides towards a greener future. The focus on strengthening the EV ecosystem through manufacturing support and state-wide charging infrastructure development is a welcome step. This will undoubtedly accelerate EV adoption, especially in the crucial commercial vehicle segment. We’re also encouraged by the vision for rooftop solarisation and free electricity, empowering consumers and contributing to energy security. The installation of 1.3 crore LED street lights further demonstrates the government’s commitment to sustainable infrastructure and improved road safety. While these initiatives are impactful, we believe the budget could have further fuelled India’s economic engine by considering additional measures. Targeted incentives for local battery production and recycling facilities would bolster supply chain resilience and create valuable jobs. Additionally, extending FAME-II subsidies beyond two-wheelers to include commercial EVs would significantly accelerate their adoption, promoting cleaner logistics and reducing carbon footprint. We remain optimistic that future policies will address these points, and Tresa Motors stands ready to actively contribute to building a cleaner, more sustainable transportation future for India.”
Mayuresh Raut, Co-founder & Managing Partner, Seafund describes “The scheme for deeptech in defence will not only help the government start addressing the Make in Bharat initiative through indigenous technologies in defence but also unlock these technologies to other civilian uses. Deeptech focused funds like ours will definitely benefit from enabling initiatives like this. The solar rooftop schemes will be a big boost to not only meet our goals for clean energy, but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for installation, manufacturing and maintenance of solar infrastructure and a secondary effect will be opportunities available for startups to build on this. Extension of tax benefits for sovereign wealth funds expiring on 31st March 24 to 31st March 25 is a good signal from the government to indicate that there will be continuation of beneficial policies and friendly institutional investor policies”
Mayank Bindal, Founder & CEO, Snap E Cabs said, “We are thrilled by the government’s commitment to bolster the electric vehicle (EV) ecosystem through robust support for manufacturing and charging infrastructure. This visionary initiative not only accelerates the transition to sustainable transportation but also fosters innovation and job creation within the EV sector. Moreover, the announcement of a new scheme for bio-manufacturing underscores the government’s dedication to promoting green growth and environmental stewardship. At Snap E Cabs, we embrace these advancements wholeheartedly and stand ready to play our part in driving the adoption of electric vehicles, advancing eco-friendly mobility solutions, and building a greener future for generations to come.”
According to VG Anil, CEO, ARENQ feels, “We wholeheartedly endorse FM Nirmala Sitharaman’s rooftop solar endeavor, aiming to deliver 300 units of free electricity monthly to 1 crore households. Committed as a battery manufacturer, we pledge top-tier, cost-efficient solutions for optimal energy storage and system performance. Collaboration with the government and stakeholders is pivotal to the initiative’s triumph, nurturing renewable energy adoption and combating energy poverty in India. Our enthusiasm is boundless as we strive to empower communities, advance sustainable practices, and forge a greener, more equitable future for all.”
“We welcome the Interim Budget 2024 and its broader goal of fostering green growth, as well as the progressive measures mentioned in the Finance Minister’s budget speech. This budget supports the ecosystem of electric vehicles and the necessity of the development of a greener, more sustainable automotive industry. The government’s commitment to supporting manufacturing and charging infrastructure aligns seamlessly with our dedication to driving innovation and sustainability in the automotive sector. The focus on promoting entrepreneurial opportunities for numerous vendors in the supply and installation of EV charging infrastructure is a pivotal step towards building a resilient ecosystem. The government acknowledges that the employment opportunities for Indian youth with technical skills in the manufacturing, installation, and maintenance of electric vehicles are noteworthy.
At Uno Minda, we have consistently prioritized skill development and job creation, and we are eager to engage in this initiative, empowering the youth and fostering a proficient workforce to support the expanding EV sector.” elucidates Nirmal K Minda, Chairman & Managing Director, Uno Minda.
Darshan Rana, Chairman and Managing Director, Erisha E Mobility Private Limited said “We are optimistic about measures like the concerted focus of the honourable Finance Minister on promoting electric mobility through the announcement of greater adoption of e-buses, which is truly encouraging for the EV industry and will equally support sustainable transportation solutions. However, there are certain areas where we believe the budget could have been more encouraging. For instance, a more robust policy framework for the adoption of electric vehicles (EVs) and announcements on the related infrastructure development would have been more beneficial for the industry. Additionally, greater incentives for EV manufacturing and research and development (R&D) activities would have further accelerated the growth of the EV industry. “
On the other hand, Prashanth Doreswamy, President and CEO, Continental India clarifies, “We, at Continental, appreciate the Indian government’s commitment to skill development and the successful training of 1.4 crore youth under the Skill India Mission. Advancements in technology mandate specialized skills and we have been speaking about this regularly. A skilled workforce is key in any sector and automotive technology is no exception. With all the focus on R&D in the automotive technology sector India, there is definitely a need to increase collaboration between the industry and academia in order to align with the evolving needs.
The government’s commitment towards the EV ecosystem is also worth appreciation, and this is also in keeping with the needs of the current times, especially as the plan is to expand and strengthen support of manufacturing and charging infrastructure – both critical aspects for faster adoption. With the government encouraging greater adoption of e-buses for public transport through payment security mechanism, it gives the automotive sector an opportunity to explore the same as well. With the allocation of a mega capital outlay for net-zero objectives, the Energy Transition Fund is also a positive move. This will also impact the automotive sector, especially in the development and adoption of new-age fuels like green hydrogen, ethanol, and biofuels. An alignment of the automotive sector’s R&D efforts with this government focus can help businesses stay ahead in the game.
We also appreciate the introduction of the scheme for bio-manufacturing and bio-foundry, recognizing its potential to promote green growth and provide environmentally friendly alternatives. Sustainability has been a key focus for Continental – from material to product and this will help us align with the government and also stay at the forefront of innovation keeping in mind sustainability.”
Sumit Aneja, Founder, Speedways Electric said, “In the pursuit of a greener and more sustainable future, the greater adoption of e-buses within public transport networks emerges as a pivotal step. Not only do electric buses significantly reduce carbon emissions, but they also contribute to cleaner and quieter urban environments. To fortify the e-vehicle ecosystem, it is essential to focus on infrastructure development, battery technology advancements, and supportive policies.
One critical aspect that requires attention is the implementation of a robust payment security mechanism. As e-buses become more prevalent, ensuring secure and efficient payment systems will be vital for user convenience and trust. Integration of secure digital payment methods, encrypted transactions, and real-time monitoring will not only streamline the payment process but also safeguard user data.
As we reflect on the budget 2024, it is encouraging to witness a commitment to fostering sustainability and technology-driven initiatives. The increased allocation for e-mobility infrastructure, research, and development signifies a forward-looking approach. This budget reflects the government’s dedication to steering the nation towards a cleaner, more energy-efficient future. Together, with a strengthened e-vehicle ecosystem and enhanced payment security mechanisms, we can accelerate the transition towards sustainable urban transportation, benefitting both the environment and the well-being of our communities.”