Finance Minister Nirmala Sitharaman's new financial budget for 2025 has left many people smiling and happy. The new budget aims to boost consumption with income tax cuts and increased expendable income for the middle class. For the automobile sector, there is a push for local battery manufacturing and EV adoption. The budget also backs MSMEs to fuel growth for the entire EV ecosystem.
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Supporting Clean Tech and Green Mobility
India aims for 30% EV sales by 2030 as a part of its sustainable mobility commitment. The budget supports the entire EV ecosystem, from components to charging infrastructure.
The new Rs 2,819 crore budget allocated to the automobile sector is lower than the previous year's Rs. 3,500 crore. But, the distribution of these funds with a focus on EV manufacturing and adoption boost is the highlight.
It also offers relief on Customs Duty on about 35 capital goods for EV battery manufacturing. The budget eliminates the Basic Customs Duty on cobalt powder, lithium-ion battery waste, and other essential minerals.
The government will also support the domestic production of motors, controllers, and other required key components. MSMEs will receive easier and more assured credit access as they play an essential role in the clean tech mission.
A Deep Tech Fund is also set up to build tech expertise nationally. Additionally, the budget offers Rs. 1.5 lakh crore in interest-free loans to states for capital expenditure.
On the consumer side, tax exemptions for up to ₹12 lakh individual income can increase the budget vehicle sales.
Overall, the budget is designed to build a "Viksit Bharat"—a developed India powered by strong economic growth and advanced technology.
