Markets support Budget 2022's emphasis on green mobility.

The markets gave the Budget 2022 a thumbs up at the end of the day. Both the Nifty and the Sensex completed trade on February 1 with 1 % or more gains due to increased capital spending, a push toward infrastructural expansion, and a methodical effort to improve the economic condition in rural India.

While there may not be many catalysts for individual stock movement, the broad-based drive toward reviving a consumption-led economic recovery appears to be providing momentum to the bullish attitude. Kishor Ostwal, Chairman and Managing Director (CMD), Critical National Infrastructure (CNI) Research, said that the Budget 2022 is highly pragmatic and growth-oriented in terms of the car sector. It includes particular provisions for EV battery swapping. In addition, initiatives on green energy have been defined, implying that the government would place a greater focus on electric cars over the coming decade.

In terms of the prospects foreseen by the Budget, Electric Vehicle (EVs) are without a doubt recognized as the key driving force. AK Prabhakar, Head-Research, IDBI Capital Markets and Securities, agrees, pointing out that the steps are aimed towards long-term growth objectives and providing a substantial push for speedier EV adoption. The government has made it clear that they are not interested in handing out short-term goodies, but rather in generating possibilities for long-term prosperity.

Roughly Rs 7.50 lakh crore is set aside for capital spending and infrastructure development, which amounts to about 2.3 % of Gross Domestic Product (GDP). Deven R Choksey, Managing Director (MD), KR Choksey Investment Managers, notes that the actual amount spent will be roughly Rs 10.25 lakh crores or 4.1 % of the GDP in real terms, combined with subsidies to states. While the long-term 25-year perspective of development and fund allocation might be read in any direction, Choksey says, "Overall, the Budget 2022 is growth-oriented and represents India's long-term ambition of sustainable 10 % GDP growth on a cumulative basis." It will lead to an increase in economic consumption.

It is about expanding employment and giving consumers more spending power, which will lead to an increase in industrial output and business profits.

Furthermore, market veterans believe that clean energy storage, battery swapping policies with interoperability standards, waste recycling, and promoting sunrise industries such as Artificial intelligence (AI), Drones, Global Positioning System (GPS) , Green Energy, and Clean Mobility are some of the well-thought-out initiatives that could attract new investments in the economy.

When established, Choksey believes, these efforts will result in spending the amount for material and labor, among other things, producing fresh wants for products and services and employment. India is predicted to attain near-10% GDP growth over the next ten years.

With the chip situation gradually improving, Ostwal concludes that the prospects for the EV industry are promising It is important to remember that the Budget size has increased from Rs 39 lakh crores to Rs 44 lakh crores, which is tremendous. In addition, 25000 km of new highways are being built. This bodes good for the industry.

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