Key Pointers From Union Budget 2019 For The Indian Auto Industry

Finance Minister Nirmala Sitharaman presented the maiden budget of the Narendra Modi 2.0 government in the Lok Sabha on Friday. “Gaon, Garib and Kisan “ is at the center of all policies of this government. But we are more interested in “Gaddi” (Vehicles) and here is what the Finance Minister proposed for the Indian Auto Industry.

• The Government has already moved the GST council to lower the GST rate on electric vehicles (EV) from 12% to 5%.
• Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs.
• Increase in special additional excise duty and road and infrastructure cess each one by 1 rupee a liter on petrol and diesel.
• An outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme.
• Upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles.
• Only advanced-battery-operated and registered e-vehicles to be incentivized under FAME Scheme.
• Customs duty exempted on certain parts of electric vehicles.
• India to make the Global hub of manufacturing of the electric vehicle.

The positive intent of the government in pushing the e-mobility revolution in India is evident from the Finance Minister’s Speech.