Budget 2025 Focus on Agriculture & Tax Relief to Drive Auto Sector Growth

The emphasis in Budget 2025 on agriculture and individual tax relief is expected to boost demand, positively impacting the automobile sector, according to industry players. The auto industry association SIAM observed that the government concentrates on enduring economic growth.
 
"The specific focus on rural prosperity and agriculture, coupled with reforms in the personal income tax, is likely to have a positive effect on the auto Industry, and will help in creating demand," SIAM President Shailesh Chandra said in a statement.

As the sector shifts toward cleaner power sources, it will notably gain from the National Manufacturing Mission, which promotes the manufacturing of clean technologies for batteries, motors, and controllers, he mentioned.

"Additionally, Chandra stated that the exclusion of essential minerals (e.g., Cobalt, Lead, Zinc, etc.), Lithium-ion battery scraps, and 35 other capital goods from customs duty will contribute to establishing a robust EV ecosystem in the nation."

The sector is grateful to the government for establishing a high-level committee focused on regulatory reforms, intended to examine regulations, certifications, licenses, and permissions, as this will undoubtedly facilitate the ease of doing business, he stated. The ACMA, representing auto component manufacturers, described the Union Budget as progressive and focused on growth.

"The focus on MSMEs, innovation, exports and supply chain resilience will provide a strong impetus to the auto component industry. Further, the proposals for personal Income Tax will put more money in the hands of people thus fuelling consumption and leading to economic growth," ACMA President Shradha Suri Marwah stated.