Learn more about EVs. Follow our blog to join our community.
Markets are happy! A remarkable budget for new and innovative industries. We'll focus on matters that are limitedly highlighted by other sources! Topics such as startups, renewable energy to Atma Nirbhar Bharat. We got you covered!
Government is providing a huge boost to startups. Majorly: 1% of companies grow without any restrictions to paid up capitals. In advancement for startups and incentivize incorporation of one-person companies, before-mentioned companies will be allowed to expand without any constraint on paid-up capital or turnover plus to convert into any other type of company at any time, according to specifications provided by the Government of India.
Focusing more on Make in India! The budget today focuses on the increase in basic-custom duties on some auto spare parts. It will additionally provide employment opportunities in India. The budget of the MSME sector is to be doubled than earlier. The auto component industry is dominated by MSME and the capital increase will help to boost the industry.
Increase in the customs duty of spare parts (such as frames & forks, wheel rims & spokes, hubs, brakes, saddles, pedals & crank gears, etc) from 10% to 15% appears to lead promotion for domestic manufacturing. Moreover, the increase in customs duty is likely to influence the price of vehicle manufacturing. It will raise the price for short-term, till the time the manufacturing ecosystem for these components is developed in the country.
Today, the budget also focused on renewable energy specified to solar and energy. Solar and Energy, was a topic mentioned back and forth by India's Fiance Minister Nirmala Sitharaman. Emerging energy transition trends from Renewables to Hydrogen and even Smart Metering. Expect a rise in the duty of solar products.
"To give a further boost to the non-conventional energy sector, I propose to provide an additional infusion of Rs 1,000 crore to SECI and Rs 1,500 crore to IREDA," Finance Minister Nirmala Sitharaman said in her Budget speech in Parliament. She also announced a National Hydrogen Mission will be launching in 2021-22 for generating Hydrogen from green power sources.
You might be wondering why there weren't any reforms or initiatives for the Electric vehicle industry in India?
The answer to it is: Yes, there were initiatives towards it. We saw initiatives towards the EV industry. Conveyed indirectly to us! Our finance minister mentioned a lump sum of the following ideas and reforms that is an action taken towards the Electric vehicle industry.
Vehicles will have to undergo a fitness test in automated fitness centres after 20 years (personal vehicles) and 15 years (commercial vehicles).
Government is focusing more on Innovation and R&D to make India Atma Nirbhar. Our Finance minister mentioned, make in India, increase the jobs, and the government will provide support from the backend. The total amount of 50K Crore INR is expected for Innovations & R&D.
Measure to phase out old and unfit vehicles command the advancement of fuel-efficient, environment-friendly vehicles, thereby reducing vehicular pollution and oil import bill.
All these measures and reforms are indirectly related to the EV industry of India. We crave to receive hopeful and most importantly "direct" news in regards to the EV industry soon.
That all folks, about the limitedly highlighted parts of budget 2021! Incredible growth budget and delivered to make the market happy and wealthy. Overall it was a bold, historic and innovative paperless budget.