The Union Budget 2024 strategically aligns with national priorities on energy security, sustainability, and economic growth. It focuses on critical minerals, infrastructure development, and job creation to enhance renewable energy and electric vehicle adoption. Industry leaders have responded positively, highlighting the budget’s potential benefits. However, they also call for additional targeted actions to address specific sectoral needs. This comprehensive approach aims to create a favorable environment for advancing India’s energy transition and ensuring long-term economic and environmental progress.
Kunal Arya, Founder and Managing Director of ZELIO Ebikes, valued the focus on job creation and skilling initiatives but expressed disappointment at the lack of specific measures for the EV sector, such as increased funding for charging infrastructure and reduced GST on EV components. He called for more support for R&D and simplified financing options to enhance innovation and global competitiveness.
Yogesh Bhatia, CEO and MD of LML, described the budget as a major boost for the EV sector. He noted that abolishing the Angel Tax, increasing the standard deduction, and exempting customs duty on critical minerals would lower production costs and make EVs more affordable. He also appreciated the incentives for job creation and the simplified tax regime for foreign shipping companies.
Gaurav Dolwani, Founder and CEO of LICO Materials, welcomed the exemption of customs duty on essential minerals like Lithium, Cobalt, and Nickel. He highlighted that this move would support India’s renewable energy and EV sectors by lowering costs, benefiting end users, and advancing the government’s electrification vision for 2030 and net zero goals by 2070.
Prassann Daphal, CEO of Recyclekaro, applauded the 25% waiver on customs duty for nearly 25 critical minerals, emphasizing its potential to boost demand across renewable sectors and strengthen the supply chain. He also noted the new ‘Critical Mineral Mission’ aimed at improving domestic production, recycling, and technology development, which will aid the e-waste and battery recycling sectors.
Kailas Patil, Director at Palladium India, praised the increased capital allocation for the Ministry of Road Transport and Highways, which aims to improve national infrastructure and road safety. He highlighted the expanded Metro Rail projects and electric vehicle infrastructure as significant steps toward sustainable public transport.
Sanchit Sekhwal Goyal, Director at Su-Kam Power Systems, welcomed the full exemption of customs duty on critical minerals, which he believes will reduce the price of lithium-ion batteries and make EVs more affordable. He praised the government’s emphasis on expanding the EV ecosystem and its commitment to climate control.
Samarth Kholkar, CEO and Co-Founder of BLive highlighted the budget’s positive impact on the EV and logistics sectors, including the removal of import duties on minerals and significant investment in road connectivity projects. He noted the potential job creation and the need for further steps, like reducing GST on EV components and expanding charging infrastructure, to support the growth of EVs.
Vikram Handa, MD of Epsilon, acknowledged the benefits of the customs duty exemptions for critical minerals but called for further development of cathode and anode manufacturing facilities in India to strengthen the EV ecosystem.
Chakravarthi C., Managing Director of Quantum Energy, expressed appreciation for the budget’s support for capital and skills development through credit guarantee schemes and industrial training centers. He emphasized the importance of addressing these needs to support the EV sector.
Overall, the Union Budget 2024 represents a significant step toward supporting India’s renewable energy and EV sectors. The customs duty exemptions and infrastructure investments are poised to drive growth and enhance sustainability. While the budget lays a strong foundation for future development, there is a clear demand for additional measures to address specific challenges within the EV sector, such as expanding charging infrastructure and reducing GST on components. The budget’s strategic focus on energy security and economic growth is commendable, but continued efforts and targeted interventions will be crucial to achieving long-term objectives and maintaining momentum in the renewable energy transition.
