Budget 2024: The Finance Minister of India, Nirmala Sitaraman has scheduled the Budget 2024 for February 1, 2024. The upcoming financial statement will work as a temporary financial statement that will guide the government in handling all finance-related matters until the new government is formed after the General Elections in 2024. Coming straight to the point, the budget for 2024 is on the horizon. India’s auto industry is seeking new policies and positive changes in the existing policies. In this article, we have given all the policy changes that the Auto Industry can expect from the budget 2024.
Potential Reduction in GST Rates for Vehicles
The government may reduce the high GST rates for two-wheelers and entry-level cars. If this happens, the auto industry will witness a rise in demand leading to considerable growth rates in 2024.
Sustainable Mobility
The government is expected to continue supporting the EV industry with the PLI scheme and FAME II subsidy to boost the EV sector and sustainable mobility in the country. These policies will help the government to achieve the goal of Net Zero emissions by 2030.
Infrastructure Development
The budget 2023 is expected to have a large portion of investment assigned for infrastructure development across the country which includes road and highway construction. The increased investment in the infrastructure will improve connectivity and logistics which will prove an advantage for the commercial as well as personal vehicle sector.
Controlled Inflation
The government is expected to bring in policies that will work to control inflation in a better way. Many of the automakers have stated that rising inflation and higher prices of car components are the primary reasons they have announced price hikes for their products this year. So catering to these issues, the budget 2024 is expected to stabilize inflation and interest rates leading to increased confidence of the consumers.
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