Auto Inc. is anticipating as the policy corridors work to complete the paperwork before February 1 as the countdown for Budget 2023 has begun.
Chairman and CEO of UNO Nirmal Minda “The government has undertaken many commendable initiatives in recent years, the Production Linked Incentive scheme for the auto component industry being one of them,” says Minda. However, there aren’t many ideas that can help the auto component industry advance further. To start, the GST structure should be improved by bringing all components’ tax rates to the standard 18% to prevent disagreements and ambiguities. The second is that by encouraging R&D with tax benefits, the make-in-India and Atmanirbhar Bharat vision will be strengthened.
Dr Amitabh Saran- Founder and CEO of Altigreen outlined the expectation of the EV sector, “We also look forward to rationalization of GST rates. Currently, 5% GST is levied on EV sales but OEMs pay 28 percent GST for spare parts. Bringing them under the 5 percent bracket can lead to a price reduction and an uptick in EV adoption. Range anxiety is one of the major challenges that have to be addressed by developing a robust charging infrastructure. We hope the government will provide more CAPEX subsidy (up to 40-50%) to install/set up charging infrastructure across India.”
Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India believes, “I strongly believe that the Indian government will prioritize the policies that can benefit the infrastructure, manufacturing sector and promote renewable energy allowing the country to realize its potential on a global scale. Manufacturing investments must be encouraged among technology providers to bring self-reliant solutions to the country. Development of new-age manufacturing skills across the top and bottom of the pyramid must be enlightened which can be a game changer for further skill development.”
Mohal Lalbhai, Co-Founder and Group CEO – of Matter added that “ I would urge the government to create tax parity for lithium Ion batteries in line with EVs, i.e., 5% GST on Lithium Ion batteries used in stationary energy storage applications, to help accelerate the nation’s clean energy goal. While local manufacturing of Cells scales up in the future, meantime a reduction in customs duty on the import of lithium-ion cells would be critical to accelerate the adoption with the scale-up of production. I am hopeful that government will also look at ways to relax regulatory norms to create a more favorable business environment.”
Rajat Verma, CEO & Founder, Lohum reiterated that “The Prime Minister has rightly acknowledged that India needs to develop self-reliance in energy security, and called for a #MakeinIndia circular economy. A circular economy of battery raw materials will boost India’s energy security and uplift domestic manufacturing. Government support can greatly accelerate this shift and magnify its rewards, which we hope to see in the budget this year.”
