Union Budget 2022: 'Govt Vision To Build EV Vehicle Ecosystem Looks Optimistic'

GatiShakti was the limelight of this year’s Union Budget, and rightly so, as it’s one of the integral pillars of growth for India. With strong government intervention along with private investments, the railway industry will largely benefit from this plan. We can expect the cargo handling capacity of railways to increase to 1600 MT by the year 2024-25, which will also accelerate the construction of two dedicated freight corridors.

Furthermore, the government’s plan to set up 400 Vande Bharat trains and 100 Gati Shakti cargo terminals within the next 3 years along with building metro systems at scale, will add impetus to the development of the sector. We also applaud the "'One Station, One Product" plan which will enhance opportunities for the supply chain ecosystem. Most importantly, the plan to bring 2,000 km of rail network under KAWACH will aid in safety and capacity augmentation. These modern synergies will result in efficient movement of goods, cut down logistics costs, raise productivity, and increase international manufacturing competitiveness.

We can expect to see a wealth of employment opportunities being created to bring these development plans to fruition.

However, we were hopeful that the 3.1 lakh crore that had been identified for Rolling stock procurement between 2015-2016 would be revived in this year due to the fact that since 2017-18, the wagon acquisition by railways has been about 20-50% below target.

The government’s vision to build an EV vehicle ecosystem through a battery swapping policy and special mobility zones looks optimistic. We look forward to seeing this budget accelerating the nation’s growth story and creating an Atmanirbhar Bharat.”