SIAM Applauds Union Budget 2024-25 For Boosting Indian Auto Industry

Published: Tuesday, July 23, 2024, 16:15 [IST]

Mr Vinod Aggarwal, President of SIAM and MD & CEO of VECV, commented on the Union Budget 2024-25. He stated, "The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of Rs 2.66 Lakh crores is a welcome step that will boost the rural economy."

Support for MSMEs and Employment Generation

The budget includes measures aimed at skilling and upskilling, which are expected to support manufacturing and create jobs. This initiative is crucial for the auto sector, which relies heavily on skilled labour. Additionally, there is significant support for MSMEs, many of which are key suppliers to the automobile industry.

Customs Duty Exemptions and Concessions

One notable proposal is the exemption of Customs Duty on imports of Lithium, Cobalt, and other rare minerals. This move is expected to reduce costs for manufacturers relying on these materials. Furthermore, the extension of concessional Customs Duty on Li-Ion Cells until March 2026 will benefit electric vehicle production.

Withdrawal of Equalization Levy

The budget also includes the withdrawal of the 2% Equalization Levy on e-transactions. This change is anticipated to ease financial transactions within the industry, fostering smoother operations and potentially lowering costs.

Mr Aggarwal concluded by saying that these announcements would continue to propel growth in the Indian Auto Industry.