Finance Minister, Nirmala Sitharaman will be presenting the Union Budget 2019 in Lok Sabha. The minister is said to put out a detailed plan of attending issues such as slow economic growth and rising unemployment. In addition, the minister is also expected to update the taxation norms for the Indian automobile industry that is presently facing one of its worst slowdowns due to poor sales and rising unsold inventory at dealerships due to lack in demand. The new policies are expected to give the much needed boost to various automobile manufacturers in the country. Here are the updates from the Union Budget 2019.
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Union Budget 2019: Universal National Transport Card for various modes of transportation, tolls and retail shopping. More details on it here
Union Budget 2019: Income tax deduction on the loan interest for purchase of electric vehicles in India. More on it here.
The Union Budget 2019 mentions of new GST norms for EVs in India. The GST rate will be reduce from 12 per cent to 5 per cent. Further, the Indian Govt. will offer an IT reduction of Rs 1.5 lakh on the loan interest for buying an EV. This should help the sale of electric vehicles in India as it is for the first time that a private owner is entitled to benefits of reduction on IT for buying an EV
The Union Budget 2019 mentions of Indian Railways that needs encouragement to grow the suburban network.
The second phase of the most ambitious Bharat Mala project will also see the development of roadways in different states. This should also help improve connectivity for different regions
After the announement of the comprehensive restructuring of highways in India, the shares of roadmakers have seen an increase. IRB Infra rose 3% to ₹98.70, Dilip Buildcon gained 2.9% to ₹498.95
The higher pace of road construction has enabled proper all-road connectivity for everyone that offered 97 per cent of eligible and feasible habitations
The Indian Government believes that the waterways means of cargo transmporation is what needs to be explored to help decongest the Indian roads and railways
Finance Minister mentions of the ambitious project of Bharatmala that will improve the road connectivity and Sagarmala that will help the connectivity between port and waterways. She also added new initaitves such as Udaan Scheme will better the country's infrastructure to bridge the gap betwwn urban and rural divide.
FM mentions of upgradation of 1.25 lakh km under the Pradhan Mantri Gram Sadak Yojana. This will be done at an estimated cost of nearly Rs 80,200 crore
The Finance Minister mentions of a comprehensive restructuring of National Highways programme which will make sure the National Highways Grid operate in the best way possible
"It is estimated that railway infra will need investment of Rs 50 lakh crore between 2018 and 2030. Given expenditure is Rs 1.4-1.6 lakh crore per annum, it could take decades to complete the projects. It is therefore, necessary to privatise"
The Government will be offering upfront incentive on purchase of EVs. This should increase the visibiliy of EVs and also give much needed encouragement.
"The ambitious project of Bharatmala will enhance road connectivity and Sagarmala will help port and waterways connectivity, she says. These along with other such initiatives such as Udaan scheme will improve India's infrastructure and enable connectivity and bridge the rural and urban divide" Finance Minister
The Finance Minister mentions of the FAME II scheme and its benefits that encouraged faster adoption of electric vehicles by offering appropriate incentives and also the right charging infrastructure.