Union Budget 2024-25 sets right tone for a sustainable, EV ecosystem

FY2024-25 is a crucial year for EVs in India. While the FAME I and II schemes have successfully generated demand for the segment, the real floor test of the segment’s feasibility and expansion begins now. With significant investments already in place and more flowing in under the PLI scheme for the EV technology, battery manufacturing and charging stations, among other parts for automotive, the announcements made by the government under theBudget 2024-25 sets the right tone for a sustainable, and robust EV ecosystem. "The Budget reinstates the government’s commitment towards sustainability and a green economy. This year is pivotal for electric vehicles (EVs), and the Budget's announcements related to skill development, support for MSMEs, exemption of customs duty on imports of Lithium and Cobalt, and other rare materials, as well as the extension of concessional custom duty on Li-cells, are significant. Additionally, the focus on manufacturing, infrastructure, and improved purchasing power among customers strengthens the proposition for a robust EV sector,” says, Puneet Gupta, Director, S&P Global Mobility.  Gupta says, “While there has been some disappointment regarding the lack of an announcement for FAME III in the Budget, we anticipate that it may be addressed under a different initiative. To