The Union Budget 2021 announcement is just a couple of days away and as most of the industries have suffered from the Covid-19 pandemic, a lot of relief is expected from the Government in multiple areas. What also makes this year’s budget worth waiting for is Finance Minister Nirmala Sitharaman’s claim that she is going to deliver the budget like ‘no other’ on 1st February. Since the Indian automotive industry plays a significant role in the economy, a lot of announcements are expected in this area as well, primarily in the favour of buyers, manufacturers, and not to forget, the electric vehicle segment.
In order to understand what all to expect from Union Budget 2021, Express Drives recently had an interaction with Pratap Chandra Sarangi – the Honourable Minister of State (MSME), Government of India. Sarangi said that all thanks to Prime Minister Narendra Modi’s vision, there has been a significant drop in the import from countries like China, Japan and America. For instance, India that earlier used to import PPE kits is now exporting the same to other countries. So, the MSME Ministry is trying its best to minimize the import and maximize the exports. Sarangi believes that in the upcoming Budget 2021, there would be an announcement that will support India in becoming self-sufficient and self-dependent to a greater extent.
Moreover, Sarangi says there will be announcements in the Budget 2021 that will help in making India a hub for manufacturing and exports. Upon asking about the steps that the MSME Ministry is taking to promote electric vehicle adoption, Sarangi said that his ministry will extend benefits in the area of electric vehicle manufacturing. In order to be precise, a 15 percent subsidy in urban areas, 25 percent in rural areas and in case of female SC/ST employees, a 35 percent subsidy in rural and 25 percent in urban areas will be offered to the EV makers.
Moreover, there are multiple schemes being run by the ministry that aim to help the EV makers in getting loans and technical guidance and NSIC extends support in the area of raw material as well. We will be bringing detailed coverage on announcements related to the auto sector under Union Budget 2021, so keep watching this space for all the action!
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