185: Budget 2022: Small auto component manufacturers eye EV incentives; jewellery sector wants reduction in duties on gold, diamonds and more

Union Finance Minister Nirmala Sitharmaman is just 10 days away from making the Budget 2022 speech. Various sectors of the economy have put forth their demands to be included in the annual financial statement.

In this edition of the Budget 2022 Podcast, CNBCTV18.com’s Kanishka Sarkar shares the wishlist of the automobile, education, jewellery and other sectors and what global brokerages think of the upcoming budget.

The auto sector was among the worst-hit due to the COVID-19 pandemic, combined with supply chain issues, semiconductor shortage, and the rise in the cost of steel and aluminium. Therefore, small auto component manufacturers want a stimulus package from the government in the next fiscal.

They also looking for incentives to invest in the electric vehicles segment and for research and development. Additionally, they want a mandatory buyback scheme for original equipment manufacturers (OEMs) to encourage the recycling of materials and components.

An Assocham survey has found that the healthcare sector is likely to be accorded the highest priority in the upcoming Budget. According to survey respondents, next in line will be MSMEs, energy and infrastructure and technology.

Colin Shah, the chairman of Gem and Jewellery Export Promotion Council (GJEPC) today told CNBC-TV18 the jewellery sector expects a reduction in duties on gold, diamonds and gem stones in this year’s Budget. Shah also wants the government to issue a clarification on the equalisation levy on rough diamonds and the safe harbor rates for special notified zones.

On the education front, Ruchir Arora, co-founder and CEO of CollegeDekho, suggests that the upcoming budget should focus on improving the Gross Enrollment Ratio (GER). The current GER stands at 27 percent, and therefore he wants the government to come up with measures to reach the target of 50 percent GER by 2030 as mentioned in the National Education Policy 2020.

Meanwhile, food and fertiliser subsidies are likely to continue to remain elevated in the FY23 budget as well. The Budget could allocate over Rs 5 lakh crore for food and fertiliser subsidies alone due to the impact of the pandemic.

Tune in to the Budget 2022 Podcast for more

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