Budget 2023-24 boosts Green Growth

The Budget proposed Lithium ion cell customs tax reduction from 21% to 13% and EV battery subsidy continuation for another year stimulates the demand of EVs will result in greener vehicles on roads by boosting the electric vehicles market and, subsequently, into the accomplishment of green growth. — Dr. S. Lingamurthy & Shivanjali Shukla

India’s Economic growth is estimated to be 6.8% in 2023-24 financial year, being the highest among all major economies, irrespective of the sluggish global growth due to the COVID pandemic and the Russia – Ukraine war. The finance minister, Nirmala Sitharaman, presented the Union Budget of Amrit Kaal in Parliament. The Union budget 2023-24 is built on the outline drawn for India@100. “Amrit kaal’s” goal is to improve the quality of life of our people with inclusive growth and development, in which the prosperous outcome of action reaches all. 

The ‘use-and-dispose’ economy currently in place, characterized by witless and destructive consumerism, is to be replaced by the circular economy towards attentive and purposeful utilization. The Hon’ble Prime Minister of India, Shri Narendra Modi, proclaimed Mission LiFE at the 2021 UN Climate Change Conference (UNFCCC COP26) to put people’s actions at the heart of the global climate action narrative. The Mission is to encourage people to engage in simple, everyday activities that, when widely adopted, can effectively halt climate change. 

One of the seven ‘SAPTARSHI’s i.e, Green Growth, stated among seven priority sectors by the Finance Minister Smt. Nirmala Sitaraman considers India’s current emphasis on green growth with a budget of 19,700 crores. The recently established National Green Hydrogen Mission will aid in the transformation of the economy to one with a low carbon intensity, lessen reliance on imports of fossil fuels, and enable the nation to assume technological and market leadership in this emerging industry with a hope to have a 5 MMT annual production rate by 2030. In addition, the Ministry of Petroleum & Natural Gas has allocated rupees 35,000 crores in the Budget for energy transition, net zero emissions, and energy security for priority capital investment by the concerned ministry.

Sustainable economic development is the need of the 21st century; a Battery Energy Storage System with a capacity of 4,000 MWH is planned to support with viability gap funding, and a comprehensive framework for pumped storage projects will be developed. The inter-state transmission line for evacuation and grid integration of 13 GW renewable energy from Ladakh with a cost of 20,700 crores, including central funding of rupees 8,300 crores has been announced.

The pollution caused by internal combustion engine vehicles (ICEVs) is the primary contributor to global warming, leading to climate change as a direct result of the emissions of harmful greenhouse gases (CO2) by the ICEVs. To curb this, a significant step toward greening our economy is getting rid of our fleet of obsolete, polluting vehicles. Adequate funds have been allotted to scrap obsolete vehicles and ambulances of the Central Government. The State Governments will also be aided in replacing old vehicles and ambulances, as outlined in the Budget 2021-22. 

As part of FAME Phase-II the INR 10,000 crore outlay that was announced earlier on April 1, 2019, for a period of five years, and which would come to an end on March 31, 2024, the allocation to the FAME II scheme has been increased. The allocation will be 5,172 Crore for FY24, which is an increase from 2,898 Crore in FY23.

In addition to the above initiatives, the Prime Minister’s Promotion of Alternate Nutrients for Agriculture Management Yojana (PM-PRANAM) incentivizes the State Governments and Union Territories to promote the usage of alternative fertilizers such as composted manure, cow dung; Galvanizing Organic Bio-Agro Resources (GOBARdhan) scheme to establish 500 new ‘waste to wealth’ plants to promote a circular economy through effective management and encouragement of cattle and organic waste in the country with the budget allocation of Rs. 10,000 crores, to establish 300 community or cluster based plants.

The Budget also gave utmost importance to Bhartiya Prakritik Kheti with the allocation of Rs. 459 crores to establish 10,000 bio-inputs resource centres to facilitate 1 crore farmers to adopt natural farming; Mangrove Initiative for Shoreline Habitats and Tangible Income (MISHTI) for the promotion of Mangrove plantation across the coastline of India i.e., 7,516.6 KM; promotion of coastal shipping for energy efficient transportation; Amrit dharohar to implement optimal use of wetlands, etc have been taken by the government to attain green growth mission and contribute to the five Amrit tattva’s mentioned by the prime minister at COP26 conference in Glasgow, emphasizing ‘PANCHAMRIT’ while delivering the ‘National statement.’ The Budget proposed Lithium ion cell customs tax reduction from 21% to 13% and EV battery subsidy continuation for another year stimulates the demand of EVs will result in greener vehicles on roads by boosting the electric vehicles market and, subsequently, into the accomplishment of green growth. 

Dr. S. Lingamurthy: Assistant Professor, Department of Economic Studies and Planning, Central University of Karnataka
Shivanjali Shukla: Research Scholar, Department of Economic Studies and Planning, Central University of Karnataka

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