“We welcome its focus on strengthening India’s manufacturing sector, promoting innovation and exports, and accelerating the shift to clean mobility.” Prashanth Doreswamy, President and CEO, Continental India
The Union Budget 2025 is forward-looking and promises long-term, inclusive growth. We welcome its focus on strengthening India’s manufacturing sector, promoting innovation and exports, and accelerating the shift to clean mobility. The budget supports the growth of the auto component industry and MSMEs through initiatives to boost Make in India, such as enhancing supply chains, improving export competitiveness, and streamlining customs duties and tax reforms.
The National Manufacturing Mission with its focus on clean tech manufacturing especially for EV batteries, motors, controllers and Hi Voltage parts will provide the necessary boost for localization. Rationalization of customs duty on raw materials and reduction of inverted duty structure will make domestic manufacturing cost competitive. Credit guarantee schemes for MSMEs will play a crucial role in strengthening India’s manufacturing value chain.
We welcome the continued emphasis on technology as a key driver for expanding digital public infrastructure and further digitalizing the economy. Introduction of BharatTradeNet and export promotion mission help integrate into global supply chain and provide easier access to export credit and improving export competitiveness.
This will further enhance ease of doing business and attract foreign investment.
The focus on R&D-driven innovation is encouraging, as also the focus on Centre of Excellence in AI. Hopefully, these will serve to make India’s automotive sector globally competitive.
The restructuring of income tax slabs will have a positive impact on consumption, with increased purchasing power. This will likely improve the demand for budget-friendly cars, two-wheelers. Interestingly, more disposable income for digital-native GenZ may also see an increased demand for feature-rich cars.
Finally, we appreciate the emphasis on skill development, job creation, and increasing workforce participation for women, which aligns with the need for a robust, future-ready talent pool. Global skilling partnerships will further position India as a key player in global manufacturing.
The automotive industry is at a pivotal juncture, and with the right policy framework, India has the potential to become a global hub for automotive technology and manufacturing. These measures will drive productivity, innovation, and global competitiveness.
By Prashanth Doreswamy, President and CEO, Continental India
