Union Budget 2023-24: Wishlist To Drive EV Growth In India
The Union Budget 2023-24 comes at a time of an inflection point toward clean mobility. India and the world in general are trying to reinvigorate its economy post Covid and the EV ecosystem is at the cusp of disproportionate growth giving the opportunity to push economic growth. Also, with the increasing concerns about air pollution and the need to reduce dependence on fossil fuels, the government is mandated to take proactive measures to promote the adoption of EVs in the transportation sector. Following are some key areas that the government should focus on to drive the growth of EVs in India, with a specific focus on last mile logistics.
• Fiscal support
India needs the right set of Fiscal support to accelerate its recovery. An integrated and clean logistics ecosystem has to be a key component of the Government's vision of a $5 trillion economy.
We expect the budget to extend the Corporate Tax Benefits for Infrastructure companies and reduce the GST from 18 per cent to 12 per cent for the Logistics sector. This GST reduction will go a long way in managing the inverted GST impact ailing the EV logistics sector.
• Easy Finance for EVs
Another key aspect is making finance easy for EVs. This can be done by loan mandate to Government sector banks and financial institutions. The government can see this as a kick start to a sustainable economy while driving demand for the automotive industry.
The budget could provide tax incentives for the purchase of EVs and the development of charging infrastructure. This would make EVs more affordable for consumers and encourage more people to switch to electric vehicles.
Additionally, subsidies should be provided for setting up EV manufacturing facilities in the country. This would not only create jobs but also make EVs more affordable for the masses.
• Investment in Research and Development (R&D)
Investment in R&D for local EV technology development is also crucial. This would not only help to improve the performance and range of EVs but also make them more reliable and cost-effective.
The government should also mandate that its own fleet of vehicles switch to EVs, setting an example for the private sector. It must also promote the use of public transportation using EVs, such as electric buses and trains.
Furthermore, the government should implement regulations to increase the use of renewable energy for charging EVs. This would help to reduce the carbon footprint of EVs and make them more environmentally friendly.
• Use of electric two-wheelers and three-wheelers in urban areas
Finally, the government should encourage the use of electric two-wheelers and three-wheelers in urban areas. These vehicles are particularly well-suited for last-mile logistics, and their widespread adoption would help to reduce traffic congestion and air pollution in cities.
In conclusion, by ensuring Budget 2023-24 supports the adoption of clean mobility, not only will we align to our national mandate of sustainable initiative but also be a huge demand and job creator in the country.
