The Union Budget 2023 is a forward-looking budget for the Indian automobile sector, focusing on ‘Make in India’ initiative of the Government with continued focus on promoting green mobility. The budget proposals will accelerate the push towards domestic manufacturing and help in fulfilling the vision of Atmanirbhar Bharat.
Key highlights for this sector include BCD exemption on import of specified capital goods/ machinery required for manufacturing of lithium-ion cells for batteries used in Electric Vehicle (EV). Additionally, BCD exemption has been introduced on import of specified vehicles, automobile parts/ components, sub-systems and tyres when imported by notified testing agency to promote localization.
Further, for last and first mile connectivity for ports, coal, steel, fertilizers and food grain sectors, 100 critical transport infrastructure projects have been identified.
The recently launched National Green Hydrogen Mission with an outlay of 19,700 crores will facilitate the transition of the economy to low carbon intensity and reduce dependents on fossil fuel imports.
