India’s proposed budget for FY2024, released in July 2024, is the first budget proposal issued by the newly inaugurated third Modi administration.

Under the slogan of “Make In India,” the Modi administration has been promoting the manufacturing industry, including the automobile industry. It has been striving to expand the middle income class. The budget plan announced this time includes public investment of 11.1 trillion rupees by the central government alone for flood control, industrial parks, and urban development, as well as a larger budget allocation for rural areas and the younger generation.

For the automotive industry, it will be interesting to see how much of a positive impact the budget will have on the new car market. Public investment in infrastructure is expected to have the effect of stimulating demand for commercial vehicles this year. Meanwhile, for young people, subsidies for skill development and school funding, as well as subsidies for both employers and workers to expand employment, are planned. In rural areas, efforts are also planned to promote natural farming methods to raise the unit sales price of agricultural products through branding, and to improve supply chains.

While these efforts will not have an immediate effect, they are expected to contribute to the expansion of disposable income and plant the seeds for the development of a segment of the population that will be able to afford new four-wheel vehicles in the future.