EVs to Get Cheaper
As per the Union Budget 2023, customs duty for machinery and goods imported to India for manufacturing Lithium-ion battery packs, will be eliminated. As Lithium-ion battery is the most crucial component of a vehicle that is all-electric, this move is likely to make all-electric bikes, scooters and cars, more pocket-friendly. However, this will be applicable to India-made EVs only.
Updates to Vehicle Scrappage Policy
More funds will be allocated towards the vehicle scrappage policy from the central government, as per the Union Budget 2023. State-wise announcements will be made soon as well. Apart from that, states will receive ample support in scrapping old ambulances and vehicles.
National Green Hydrogen Mission
The Union Budget 2023 is poised to allocate large amounts of funds towards the net zero emissions goal. The Finance Minister has also announced an allocation of Rs 19,700 crore for the generation of green hydrogen via the National Green Hydrogen Mission. The government aims to reach a 5 million metric tons production capacity within 5 years.
Improved Governance and Investor Protection
India’s financial markets have strengthened, owing to consistent reforms and innovative technology. The Union Budget 2023-24 is expected to make the financial sector more robust. As per the Finance Minister, to improve investor protection and bank governance, certain amendments will be made to the Banking Companies Act, Banking Regulation Act, and the Reserve Bank of India Act. Good governance is not only crucial to prevent asset waste and ensure financial transparency, but also to enhance accountability and investor responsibility.
Central Data Processing Centre
The government aims to establish a central processing centre to ensure faster response to corporations. This centre will handle forms filed with field offices under the companies law, in a centralised manner.
Simplification of KYC
A risk-based approach will be adopted to simplify the KYC process. Regulators in the financial sector will also be encouraged to use a KYC system that easily meets the evolving needs of a Digital India.
Financial Support for Digital Payments
Digital payment has played a key role in enhancing income for small businesses and street vendors. It has also ensured secure and fast bank-to-bank transactions, even for modest amounts. While sharing data related to digital payment for the last year, Nirmala Sitharaman highlighted 76% increase in digital transactions and 91% hike in value. She also assured continued support for the digital public infrastructure in 2023-24.
According to the Union Budget 2023, data embassies in GIFT IFSC will be established for India’s digital continuity solutions. This will enable our country to safeguard data with the help of diplomatic solutions.
Capacity Building in Securities Market
SEBI will be empowered to create, manage, regulate, and enforce education standards and norms in the National Institute of Securities Markets. This will build the capacity of professionals and functionaries.