VOTE ON ACCOUNT: SIGNS FOR THE FULL BUDGET

The Vote On Account or the Interim Union Budget 2024-25 gave signs of what's to come for the auto industry in the Full Budget due post-elections, writes Ashish Bhatia.

The Vote On Account or the interim Union Budget attempted to sustain the momentum from the Union Budget 2023. It surpassed the previous CapEx outlay at 3.3 percent of the GDP when the capital investment outlay was raised for the third year to rupees 10 lakh crore and hailed by the industry. Finance Minister, Nirmala Sitharam set a CapEx outlay of rupees 11.11 lakh crore at a time when the CV industry expected continuity and sustained momentum in the past reforms to headline.

Despite the limitations of a capital budget, the industry put forth its wish list to the Ministry of Finance, Government of India. At a time when no major policy announcements were expected, the FM's speech was hailed as a confident approach by one section and a cautious approach by the other section in an election year in a mixed response as a whole. The focus on reducing the Current Account Deficit (CAD) amidst concerns of it widening to USD 36 bn at 4.4 per cent of the GDP had the FM allay fears of the country's status as a net importer leading to forex outflow.

Aligned with the 'Viksit Bharat' vision plan, the FM stressed the development mantra was linked to comprehensive development for all. Moving towards the vision of a developed India by 2047 translates to people-centric development. This encompasses substantial development of physical infrastructure besides digital public infra to promote formalisation and financial inclusion and social. It also entails deepening and widening the tax base through the Goods and Services Tax (GST). The government emphasised the FM is committed to proactive inflation management.