2024 BUDGET'S AUTOMOTIVE IMPACT

The full Union Budget 2024 introduced several changes with significant implications for the automotive ecosystem. As sentiments were a mixed bag, Ashish Bhatia looks at the positive aspects and areas that could have been addressed.

- Ashish Bhatia

The claims of the Budget being “Good” were countered with a contrarian opinion in a divided verdict as gains and levies for the automotive segment were disclosed. If the ‘Vote Of Account’ budget with signs set the base of expectations from the full budget, the automotive ecosystem, encompassing and not limited to vehicle manufacturers and component suppliers had hopes pinned on the announcements from the seventh budget speech by Finance Minister Nirmala Sitharaman. The anticipation of benefiting from several budgetary measures with continuity in leadership at the centre on the back of regular mediation between the Government and the industry was at its peak. The automotive sector has taken the for and against in its stride.

ACMA, the apex body representing India’s auto component sector lauded the Government on the measures announced in the Union Budget, especially for the focus on inclusive growth, development of infrastructure, ease of doing business, enhanced outlay for capital expenditure, impetus on growth and development of manufacturing and Micro Small and Medium Enterprises (MSME) to go with the thrust on skilling and research. Thanking the Union Finance Minister, Shradha Suri Marwah, President ACMA and CMD Subros, stated, “The budget, a blueprint for Viksit Bharat, will drive sustainable yet inclusive growth, especially in the manufacturing industry, at a rapid pace. Focus on strengthening MSMEs through the Credit Guarantee Scheme and credit support during stress periods, measures to bolster energy security and encouragement to start-ups by abolishing angel tax are indeed steps in the right direction.”