Union Budget 2023-24 presented by Smt. Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs in the Parliament today outlined the vision of Amrit Kaal which shall reflect an empowered and inclusive economy.  “We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes”, she said.

Vision for Amrit Kaal – an empowered and inclusive economy

Union Finance Minister highlighted that “Our vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector”. To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential, she added.

The economic agenda for achieving this vision would focus on three priorities:

  1. facilitating ample opportunities for citizens, especially the youth, to fulfil their aspirations;
  2. providing strong impetus to growth and job creation; and
  3. strengthening macro-economic stability

Budget reaction from Transport Minister Nitin Gadkari:

Union Minister for Road Transport and Highways Shri Nitin Gadkari has said under the leadership of Prime Minister Shri Narendra Modi this first budget in Amrit Kaal  presented by Finance Minister Smt. Nirmala Sitharaman is envisioning a prosperous and inclusive India in which the fruits of development will reach all sections and citizens, especially our youth, women, farmers, OBCs, SCs, and STs. He said driving the nation to AatmaNirbharta, this budget will equip India with new-age infrastructure, decline imports and strengthen our energy sector with a futuristic approach.

Shri Gadkari said Inclusive Development, Reaching the Last Mile, Infrastructure and Investment, Unleashing the Potential, Green Growth, Youth Power, and Finance Sector; this budget adopts the above 7 priorities which complement each other and act as a Sapt Rishi. He said ‘Janbhagidari’ through ‘sabka saath, sabka prayaas’ is essential; our vision for the Amrit Kaal includes a tech-driven & knowledge-based economy, with strong public finances and a robust financial sector.

Shri Gadkari said the government’s efforts since 2014 have ensured a better quality of life for all citizens. The per capita income has doubled to 1.97 Lakh rupees and the Indian economy has moved to become 5th largest from 10th in the last 9 years.

The Minister said digital Public Infrastructure for Agriculture will be built as open source, open standard, inter-operable public goods which will enable inclusive farmer-centric solutions, and support for agri-industry as well as start-ups.

Shri Gadkari said he  would like to thank FM Smt. Nirmala Sitharaman  for proposing Rs 20,700 Crore investment in the renewable energy sector, Rs 19, 700 Crore for National Green Hydrogen Mission, and enforcing provisions for Vehicle Scrappage Policy for a sustainable and energy-efficient future.

Budget reaction quote from Santosh Iyer, Managing Director & CEO, Mercedes-Benz India:

“The Union Budget 2023 should drive demand as it focuses on boosting consumption by increasing the disposable income of taxpayers. Further, an increased capital expenditure on infrastructure, particularly roads, should also create demand for the automotive sector. The change in basic custom duties is however going to impact the pricing of some of our select cars like the S-Class Maybach and select CBUs like GLB and EQB, making them dearer. However as we locally manufacture most of our models, this will not affect 95% of our portfolio.” 

Mr. Iyer, elaborated, “The focus on sustainability in the budget is commendable and initiatives like extending customs duty exemption of capital goods and machinery to manufacture lithium-ion cells for EVs is a step in the right direction, as it will consistently drive green mobility in the country.”


FY 2023-24 UNION BUDGET STATEMENT FROM Satyakam Arya, Managing Director & CEO, Daimler India Commercial Vehicles: 

“The FY 2023-24 Union Budget shows consistency and an intent for growth. The 33% increase in CAPEX outlay underlines the fact that the Budget is pro-growth and the increase is to step up on the 7% growth achieved in the previous fiscal. Main highlights which stood out for us as a commercial vehicles manufacturer was the eye on digitalization by leveraging 5G, which can help optimize costs and improve efficiency in the sectors it is implemented; the INR 19,500 crore outlay for green hydrogen development is a step in the right direction for the future of heavy-duty trucks and largely, the logistics industry; INR 35,000 crore for renewable energy transition projects is also an interesting initiative but how this pans out in the medium term will mark its significance; the PM Awas Yojana that is planned for boosting rural housing would create more jobs and bring more projects for the CV industry. We also feel that the concept of the Green Credit program can be beneficial if thought through and implemented well. Our overall view of the FY 2024 budget is that it is expansive and pragmatic. The budget clearly indicates a penchant for sustainable growth with a potential of aligning with long-term objectives. While the infrastructure push is a fiscal multiplier, it also gives the CV industry plenty of projects to look out for in the medium term. However, we were also expecting more on the National Logistics Policy, its strategy which was drafted exceptionally and we were eager to see it get implemented or at least have an outlay. A more specific mention on the continuity of the Scrappage Policy would have given a direction to the industry, not just for preparing to replace phased out vehicles with new ones but to encourage the proliferation of scrappage companies to expand their businesses.

There is no doubt that India’s economy is more resilient and can withstand headwinds coming from slowing global economies but execution of direction is important to set the country on the path to achieve more success. India is also a great opportunity for global investors to consider investing in our country, to enjoy the long term benefits of an economy that is getting stronger by the year. The FY 2023-24 Budget shows consistency but the near-term capital inflow is worth monitoring and improvising on in order to transform consistency into healthy momentum.”

Senior leadership of Mahindra & Mahindra Ltd. on the Union Budget 2023 announcement:

Dr. Anish Shah, Managing Director & CEO, Mahindra Group

“This is an outstanding budget as it is disciplined, growth-oriented, inclusive and sustainable. The Finance Minister has done a commendable job by tabling a budget that is big on consistency and driven majorly by capex. The steep increase in capex, to the tune of Rs 10 lakh crore, will ensure the continuum of cyclical recovery. Capex spending is good because it has a higher multiplier effect: every rupee spent on capex has a multiplier of Rs 3 as compared to just about Rs 0.9 for revenue expenditure. That apart, higher capex also creates jobs in the hinterland. The focus on core infrastructure, including increased funding for railways and clean energy, as well as the government’s ambitious plans for the agricultural sector, will help to improve rural incomes. Above all, it is encouraging to see the government setting the pace for climate action by announcing a “green budget” that will pave the way for a greener, cleaner planet.”

Rajesh Jejurikar, Executive Director (Auto & Farm Sectors), Mahindra & Mahindra Ltd.

“The Budget has struck the right balance between managing growth and fiscal prudence. The reduction in income tax and other taxes will put more money in the hands of consumers, driving consumption and growth in the economy . The Government’s focused investments in infrastructure will support long term sustainable economic growth. The budget enhances the positive sentiment in the country when the global environment has uncertainty.”

Reaction on Union Budget 2023- 24 from Venkatram Mamillapalle, Country CEO & Managing Director, Renault India:

Venkatram Mamillapalle, Country CEO & Managing Director, Renault India-

“Union Budget brings cheers to the automobile industry as it will positively give push to sales

The budget has laid special emphasis on the Vehicle Scrappage Policy which will not only boost the sales but will also enable in achieving clean and green environment for overall sustainable development. Additional, funds infusion in the scrappage policy is a remarkable step and is in the right direction to achieve India’s goal of being carbon neutral by 2070. This policy would eventually help the entire eco-system of automotive industry as this will translate into growing orderbooks of OEMs, increased output and job creation.

Another significant announcement made by the government on the customs duty exemption being extended to capital goods and machinery required for the manufacturing of lithium-ion batteries used in EVs. This step is a boost for companies that are / would be manufacturing electric vehicles locally as it will help reduce the cost of EVs.

The automobile industry will witness an increase in sales with the introduction of new tax rebate limit on personal income which has been raised from INR 5 lacs per annum to INR 7lacs per annum. This step is likely to help the sector as more disposable income with salaried customers may give supplementary push to demand for personal vehicles.”

Toyota Kirloskar Motor – Budget Reaction 2023, as on 1 February 2023 from Vikram Gulati, Country Head and Executive Vice-President, Toyota Kirloskar Motor:

“The Hon’ble Finance Minister Smt. Nirmala Sitharaman has presented an exceptional budget by balancing the need for sustaining rapid growth, while maintaining an eye on fiscal prudence.  Given the fact that there is an outlay of Rs. 10 trillion towards Capex which represents 3.3% of the GDP, and a 33% Y-o-Y increase, this will definitely contribute to a robust economic growth. While doing so, the Government has aimed at a fiscal deficit target of 5.9% for the upcoming year with a clear glide path to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.
The Budget which not only focuses on inclusiveness, youth empowerment and skill development, but also aims to give impetus to “Green Growth” with sufficient outlays for supporting the recently announced National Green Hydrogen Mission, doubling of allocation for FAME 2 scheme and for providing viability gap funding for Battery Energy Storage System (BESS). The support for 500 new “WASTE to WEALTH” plants under the GOBARdhan scheme towards leveraging compressed biogas will also encourage a Green and circular economy.
Further, the announcement towards fund allocation for scrapping old vehicles of Central and State Governments will not only help the environment and reduce fossil fuel consumption, but will also generate demand for new vehicles.

Priorities of this year’s budget clearly resonates the Government’s vision for overall development of our country in an inclusive, environmentally responsible manner towards a technology driven and knowledge based economy . The added reforms announced towards the ease of doing business, as well as simplifying the direct tax administration, as well as introducing new tax slabs, are bound to lead to greater disposable income, which will generate demand and are supportive for the growth of the economy.”

Reaction Quote on behalf of Mr. Uday Narang, Founder and Chairman, Omega Seiki Mobility:

“The government’s forward looking vision in promoting environment and sustainability in the recent Union Budget 2023, will prove to be an accelerator for the EV Industry.  Extension of customs duty exemption for the manufacture of lithium-ion batteries and removal of customs duty on imported machinery used for manufacturing Li-ion batteries are welcome initiatives as these will help in boosting the demand for EV’s.

The policy on the replacement of old polluting vehicles should accelerate the transition towards electric vehicles. Overall, we are happy with the budget as it is inclusive, and progressive and will encourage investments in the EV sector in a big way.”

Budget Reaction from HOP Electric Mobility:

Ketan Mehta, CEO and Founder of HOP Electric Mobility, India’s fastest growing electric 2-wheeler manufacturer, says “A largely all-encompassing inclusive budget offers something to cheer about for all sectors; emphasis on rural development – where resides the real BHARAT, and Green sustainable climate consciousness is growth focused for a bright future. The Budget will drive economic growth, create jobs and attract investments. Pushing investments in sectors such as agriculture, fishery and cattle, and supporting procurement of components for electric vehicles, and focus on clean energy and fuels like Hydrogen will significantly enhance the prospects of segments that were in need of attention.“.

Post-budget comment from Trontek:

Mr. Samrath Kochar, CEO & Founder of Trontek, said, “The budget is pragmatic and has taken the right steps towards advancing green mobility adoption in the country. Extension of customs duty exemption on Li-ion cells and removal of customs duty on imported machinery used for manufacturing Li-ion batteries will bring down the cost of EV batteries thereby reducing the cost of EV adoption. Going forward, we are certain that the Government will also look at bringing a PLI scheme for battery pack manufacturers and also reduce GST on batteries to benefit the many MSMEs operating in the EV sector.”

Union Budget 2023- 24 from Dr. Sudhir Mehta, Founder and chairman, Pinnacle Industries & EKA Mobility:

“Congratulations to the Hon’ble Finance Minister for presenting a holistic & growth-oriented budget. The focus on capital expenditure with promising prospects for the commercial vehicle, green mobility, and railway sector is indeed encouraging. One of the most progressive announcements is the custom duty removal on capital goods imported for manufacturing Li-ion batteries, for electric vehicles built locally in India, which will ensure the cost rationalization for electric vehicles substantially. This will not only help us achieve our sustainability goals but also promote ‘Made in India’ products & technology. The government is consistent in its focus on green mobility, and budget allocation toward the National Hydrogen Mission will bring new opportunities for growth & innovation for the country.

The automotive sector is also encouraged by the new scrappage policy, which will positively impact the entire value chain by creating more demand in the sector and giving a boost to the economy. Adequate funding to scrap old government vehicles and ambulances will create additional demand for small & medium commercial vehicles, which will also lead to more job opportunities in the sector.

The Government’s biggest-ever allocation for Indian Railways will ensure a more efficient, safe, and sustainable transportation system, it will also trigger new opportunities and growth in the railway component manufacturing, maintenance, and operations systems.  

The Government’s achievements so far and plans to strengthen the economic empowerment of women and tourism are highly admirable. Opportunities created by such liberal initiatives will provide a strong impetus to job creation & strengthening macroeconomic stability.”


“The Modi Government’s last full budget has been populist in all aspects as it will help boost Auto Sales all around.

While the capital outlay of Rs 10 Lakh Cr in infra spending will definitely aid CV sales, the aim to scrap all old government vehicles by aiding State Governments will boost all segment sales.

Apart from this, the reduction in individual tax slabs will benefit the ailing entry level 2W and PV segment. Reduction in highest tax surcharge from 37% to 25% will also benefit luxury vehicle sales. With focus on Electrification, relaxation on import duties of Lithium ion batteries will help in price reduction of EVs, thus make it affordable for the masses.

On business front, being part of the MSME universe, cost of credit guarantee will reduce by 1% thus helping Auto Dealers in raising funds. The budget has also focussed on ease of doing business by reducing more then 39K compliances and enabling entity level digilocker for storing and sharing documents.”

Budget Reaction from Revfin Services:

Mr. Sameer Aggarwal, CEO and Founder of Revfin Services

The government’s dedication to  ‘green growth’ approach promoting environmental sustainability, as emphasized by Finance Minister Nirmala Sitharaman in the recent Union Budget 2023, is a commendable development,” stated Sameer Aggarwal, CEO and Founder of Revfin Services, an electric vehicles financing & digital lending platform. He added, “The emphasis on reducing carbon footprint and generating employment through green growth initiatives displays a deep comprehension of the interdependence of the environment and the economy. The 7 main priorities, referred to as ‘Saptrishi,’ will drive sustainable and environmentally friendly economic development and this, truly is in the direction of India seeking a leadership role in mitigating the global climate crisis.

Commenting on the inclusive aspect of the announcements made, Sameer said, “Budget is very positive for rural economy as it is talking about investments and credit schemes in agriculture, fishery, cattle etc. and this will generate higher income for rural folks and enable them to purchase L5 (e-rickshaw for commercial purposes) and better capacity to repay EMIs. Customs duty exemption is being extended to imports of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles to further boost green mobility.”

Budget reaction from Mr. Suhas Rajkumar, Founder and CEO, Simple Energy:

“The budget for FY24 announced by FM Nirmala Sitharaman is encouraging on a lot of fronts, especially in the space we operate in. One of the key focus areas is Green Growth and the schemes announced are promising and we welcome the optimism ignited by the Finance Ministry in this space.

These progressive schemes will surely enable rapid electrification in the country and encourage consumers to transition seamlessly towards green mobility which will help OEMs to script a robust growth story in the domestic market. Furthermore, we congratulate the Government of India on laying down its aim of reaching net-zero carbon emissions by 2070. We will work in alignment with the GoI’s aim to maximize growth opportunities in shaping a greener tomorrow.”

Budget Reaction from : Mr. Niranjan Nayak, MD, Delta Electronics India:

“We are firmly aligned with the Government’s vision of ‘Amrit Kaal’ which includes a technology-driven, knowledge-based sustainable economy. For the vision of 2070 Net-Zero CO2 Emission, investment in the energy transition will play a crucial role. We at Delta have already implemented many programs for reducing carbon emissions and signed up for many sustainable initiatives like RE100, net zero, green products etc. for a greener tomorrow. Also, all our products offerings are energy-efficient and green solutions that aid in achieving the overall nation’s carbon footprint reduction targets ranging from power quality improvement products to green EV charging solutions etc.”

“The Budget 2023 further focus on sectors that include setting up labs for developing applications using 5G services, railways and enhanced focus on the smart city infrastructure to keep the economy on a steady growth, these are progressive measures and we feel that they will play a critical role for us to become key contributors in these areas and further development. The budget has particularly emphasized on efficiency and sustainability as the key driving forces in the coming years and let all key stakeholders identify and utilise these opportunities to drive the robust growth agenda of the country.”