Union Budget 2022 A Preview

The automotive components industry has set expectations from the Union Budget 2022. Ashish Bhatia shares the industry’s wishlist from the annual spectacle.

- Ashish Bhatia

The Union Budget 2022 will be presented in the parliament on February 01, 2022, by Union Finance Minister (FM) Nirmala Sitharaman amidst the third wave of Covid-19 having a direct bearing on the fourth quarter of FY2022 (Q4FY2022). As the annual spectacle nears the allocation reveals for the automotive industry, its key stakeholders are ready with their wish list. Like every year, questions loom large on the direction the FM takes especially since it is the third calendar year on the trot that the industry is weighed down by the pandemic. Even though the industry is much more prepared this year, it is yearning for answers and a clear road map to align near-term recovery and propel long-term growth plans. Will it or won’t it come good for the automotive components ecosystem as a whole is the big question!

Will it be tilted to address supply-side concerns or will it incentivize demand through direct and indirect measures and will the FM pull offthe balancing act? A must to in turn boost the sectoral prospects and satisfy the stakeholders with a validation of the government continuing to extend support. Leading up to the budget, the government has made itself clear. It wants to emerge as a trusted partner in the global supply chain. The industry is hoping it walks the talk too with the fine print of the budgetary allocations reflecting it. In the words of Prime Minister Narendra Modi, the government is working to improve ease of doing business, simplify tax structures and make improvements in the context of retrospective tax. To make India an attractive destination for global investment, the government will look to walk the talk on home ground.

Key ACMA recommendations

Upward Revision of RoDTEP rates