UNION BUDGET 2022:

We welcome the Union Budget 2022, which spells seamless growth for the Auto & Auto Ancillary industry in India. 

The government’s focus on Battery Swapping policy to be brought with inter-operability standards and push for clean tech and electric vehicles will create the right ambient environment for EV introduction and overall harmonization of the electric mobility aspiration of the nation. This move will prove to a giant leap on the nation in advocating introduction of cleaner propulsion technologies and will improve air quality and reduce consumption of conventional fossil fuels.

  The government has laid emphasis on the development of the infrastructure within the country that will further help build capacities for the resurgence of the automotive sector in India and envisages ₹20K Crore investment outlay in infrastructure projects, under the auspices of PM Gait Shakti that focuses on 7 engines of growth, including building the road transport network in the country. 

The National Highways network will be expanded by 25,000 km in 2022-23. Better roads will have a certain positive impact on the automotive sector.

 Finally, the government’s decision of strengthening the rural economy through a MSP payment of ₹2.73 lakh crore along with other benefits with an objective of aiding the farming sector, will help increase the disposable income, improving the sentiment in rural areas and further improving the demand & aspirations of rural and semi-urban markets of India for personal mobility.

  Union Budget 2022 sets the pace for the Indian Economy’s growth trajectory amidst the challenges brought forth by the pandemic. 

  For the automobile sector, we welcome the ‘PM Gait Shakti Master Plan’ focusing on building world-class infrastructure and improved connectivity for commuters. The strong push towards augmenting agricultural productivity should help enable buoyant rural demand. In the electric mobility space, we strongly support the measures undertaken by Government to promote clean and green mobility, mainly introducing the battery-swapping policy will be instrumental in supporting an efficient EV ecosystem.

 We appreciate the Government’s vision of building the skilling ecosystem for youth in India, which will play a critical role in driving innovation in the industry.

  The Finance Minister has presented a growth-oriented and pro-development Budget for 2022-23 by focusing on sustainable planning & development, energy transition for a cleaner tomorrow and inclusive growth through a tech-enabled economy. Also, investment led growth strategy and the sizeable capital investment for sustained and speedy economic revival are reflected in the sharp increase in capital expenditure for FY23. The special focus on education, digital and clean mobility is laudable.

 The Battery Swapping policy and special EV mobility zones will help in the smooth transition to electric vehicles. The budget has laid the roadmap for long-term development over the next 25 years and areas like artificial intelligence, drones, semiconductors, space economy, genomics, green energy, and clean mobility systems will collectively lead the future growth of the economy. This budget echoes our sentiment and commitment to indigenous mobility solutions for a cleaner tomorrow.

 It was heartening to see the Honorable Finance Minister lay down Gait-Shakti and Inclusive development; the key tenets of Budget 2022 as she presented a blueprint for Amrita Kraal, which she termed futuristic and inclusive.

 I applaud the finance minister for using the Union Budget as a launch-pad to share the blueprint for India’s economic trajectory over the next 25 years.

 Overall, the budget is well-balanced and conscious to the needs of all segments of the economy, while staying true to the long-term goal of nation building. The resurgent Budget has put the country firmly on path for its $5-trillion target, while showing the roadmap towards India’s dominant role in a new post-pandemic world.