Union Budget 2022: Union Finance Minister Nirmala Sitharaman (Finance Minister Nirmala Sitharaman) presented the Union Budget in Parliament on Tuesday. This budget has been welcomed by the corporate world. in the same line Federation of Automobile Dealers Associations (FADA) also includes. Welcoming the budget, FADA President Vikensh Gulati said, “Central Budget 2022 Wants to lay the foundation for the next 25 years. With the Prime Minister’s ‘Gati Shakti National Master Plan’, a Rs 100 lakh crore project to build comprehensive infrastructure in India, this will be a significant step towards the path of development. The budget has tried to focus on each and every sector and also tried to stimulate the economy after the pandemic slowdown.
He further added, “FADA welcomes and supports the government’s efforts and initiatives towards electric mobility. There is a clear emphasis on creative, sustainable and innovative business models. Battery swapping and Energy as a Service (EAS)” EAAS) will certainly help in accelerating the transition towards clean mobility.Development of Special Mobility Zones for Electric Vehicles and promotion of clean technology for public transport attest to the Government’s commitment towards e-mobility, which This will boost confidence in the EV industry in terms of manufacturing, sales and create a sense of assurance amongst the customers.”
Vikensh Gulati further said, “The government’s plan to develop 25,000 km of new highways will result in an increase in infrastructure expenditure, resulting in an increase in sales of commercial vehicles, as well as under a new scheme called ‘Kavach’. 2,000 km of road will be connected. There will be an added benefit for the revival of this section. With the extension of the ECLG scheme, it is a remarkable step by the government to support the MSME sector coming out of the slowdown caused by the pandemic. “
Vikensh Gulati said, Rural India has been a major driver for the entry level passenger vehicle segment and two wheeler space in general. With the government’s plan to direct payment of Rs 2.3 lakh crore as MSP to farmers, it will act as a booster for the sales of two wheelers, tractors and the entry level PV sector. However, an additional duty of Rs 2 per liter on non-blended fuel, from October 2022, could play a bad game for the already stressed 2W industry.