The Finance Ministry has begun working on the upcoming Union Budget 2024 (Interim), which will provide a tentative indication of the government’s intent and future push.
Amongst the various segments hoping and sharing their suggestions with the government, the Indian Automotive industry is optimistic and upbeat about the coming budget.
Financial Express Online spoke with industry leaders to understand their expectations and wishlists.
Vinod Aggarwal, President, the Society of Indian Automobile Manufacturers (SIAM) said, “We are not expecting any special sops from the government. They should not create any sudden disruptions, they should continue with good policies, infrastructure investments, and stability in regulations, and not introduce regulatory norms. Any new norms also lead to an increase in costs. They should not levy or come out with surprises.”
Vinnie Mehta, Director General, Automotive Components Manufacturers Association tells Financial Express Online, ‘’2024 being an election year, the February budget is most likely going to be a vote on account. Having said that, I must credit the government for its benign policies especially the PLI and the FAME which have greatly benefitted the automotive ecosystem. We are hopeful that these will continue to receive generous budgetary allocations. Having said that, there are a few cases of inverted duty structure with regard to GST in the case of EVs and some of their components which are being taken up with the GST council.’’
While the interim Budget is expected to maintain a status quo on the GST front on vehicles. An update on the potential FAME 3 scheme, PLI sops, and revision on GST entry-level two-wheelers, is something the industry would hope for.
