INDIA REPORT
The 2022-2023 Budget is focused on building long-term strength using investment as the growth lever while maintaining policy stability and inclusivity. The 35% increased capex outlay, major infrastructure projects like 25,000 km road construction, 100 Cargo terminals, Project GatiShakti, 5G network, optic fiber cable laying and the recent PLI schemes are major positives.
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“The blueprint of a digitally enabled, Aatmanirbhar Bharat, coupled with measures that will drive sustainable yet inclusive growth at a rapid pace for the next twenty-five years. These are the bedrock of the proposals announced in the Union Budget 2022-23, as we redefine our economy in a post-pandemic world. Setting the direction for creation of urban fossil fuel free zones, policy for battery swapping and energy as service and incentives for creating a vibrant start-up eco system, India could soon emerge as a fore-runner of green mobility solutions for the world” – Sunjay J Kapur, President ACMA (Automobile component manufacturers association of India)
PSR Analysis. The Union Budget 2022 seeks to lay the foundation for the next 25 years, from India@75 to India@100. With PM’s ‘Gati Shakti National Master Plan, a Rs 100-lakh crore project for building comprehensive infrastructure in India, it will be a significant step towards path to development. The Budget attempts to focus on each of the sectors and has also tried to stimulate the economy after the pandemic slowdown.
There is a clear emphasis on creative, sustainable and innovative business models. Battery Swapping and Energy as a Service (EAAS) will help accelerate the transition towards Clean Mobility. The development of special mobility zones for electric vehicles and promoting clean technology for public transport validate government’s commitment to E-mobility, which would boost confidence in the EV industry in terms of manufacturing, sales, and it will create a sense of assurance among customers.
Further, the Government also revealed in the budget its plans for developing 25,000 kilometers of new highways in the next financial year. This will result in a push for infrastructure spending and in turn ensure an increase in Commercial Vehicle sales in the country.
Apart from this, the Finance Minister also announced that to promote the use of environment friendly blended fuels in the country, non-blended fuels will attract an additional excise duty of Rs. 2/liter starting in October 2022. This will also help in reducing the Petroleum imports into the country. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
