The Union Budget also gives a positive signal and strong impetus to the entire industry and continue their faith in the ‘India Growth Story’ with continued investment and expansion. The announcement of setting up of the National Manufacturing Mission’s for clean technology manufacturing, and support to domestic EV battery manufacturing is a positive step towards strengthening the BEV ecosystem.
The 2025 Union Budget is very progressive, people-centric and ‘reform focused’ with a strategic focus on infrastructure, digitization, upskilling of youth and redeveloping cities, with a keen eye on uplifting agriculture and driving prosperity with sustainable growth. Automobile is aspirational for millions, symbolising prosperity, and growth, hence the automotive industry is called the pulse of the economy. The luxury segment in specific is highly sentiment-driven, and with this Budget, we see positive customer sentiments, though luxury segment is not directly impacted with the reforms announced. However, a tricking effect influences with robust economic activities, a buoyant mood in the market and renewed zest in consumption and spends that in turn influences the economy.
We expect the focus on urban and rural reforms and on agriculture to give a strong push at a grass root level to the economy, paving the way for a long-term growth of the Indian economy. The Budget also delineates a strong framework for inclusive development and fostering economic growth, which are essential in transforming our journey towards a developed economy. There is lot of positive sentiments for the common citizens, youth and private investors from this Budget.
The Budget also is progressive and forward-looking with setting up of a National Manufacturing Mission to support clean tech manufacturing which will support domestic production of EV batteries and solar panels. Similarly focus on skill enhancement remains the government’s focus with 5 National centres of excellence for skilling announced in the Budget. The Govt also seems to support the MSMEs to achieve higher efficiency in scale and new technologies upgradation and giving better access to investment, offering them confidence to expand which can result in job creation in the short to mid-term.
The 2025 Union Budget envisions and sets a long-term growth path for the Indian economy to play a key role in global trade. These reforms lay priority on addressing basic consumption needs, enhance rural economy and will strengthen urban household income. It is my belief, that we are headed towards becoming a developed economy by curating avenues for growth, prosperity, self-reliance and empowerment. A niche garden with high fences should evolve and progress into an open and beautiful garden with lowered fences, which draws admiration of the world and becomes an object of inspiration. That is the India we aspire for and its time we achieve that, as we have the vision, the intent and resources.
The writer is the Managing Director & CEO, Mercedes-Benz India.
