Friday, July 11, 2014
By Manoj Kumawat
Union Budget 2014: Welcomed by Auto Industry Experts
Auto-makers and sector experts today welcomed the government's big push to the infrastructure and manufacturing sectors in the 2014-15 Union Budget and said these measures in turn will benefit the automobile industry. "Increased thrust of infrastructure development across the country, including North East and in rural areas is likely to increase vehicle ownership in those regions," Abdul Majeed, Partner Price Waterhouse, also an auto expert, said.
The government seems to have adopted a balance approach in its first budget as far as the auto industry is concerned, he said, adding "As expected there were no big policy announcements in the automotive sector." The excise duty benefits announced in the interim budget earlier this year had already been extended until December 31, and any further extension or change in those duties will all depend on the demand in the automotive sector in the next months, he said.
In addition, amendment to Apprenticeship Act, SMEs (small and medium enterprise) Skill India programme for MSMEs (micro, small and medium enterprise) are some positive measures for the auto component companies, majority of which belong to these two categories, he added. General Motors India President & Managing Director Arvind Saxena termed the budget as "a reform-oriented budget", as it focuses on infrastructural development, education, skill development, agriculture, irrigation, health care, among others. "As far as the automotive industry is concerned, the focus on rural roads, highways and expressways are welcome decisions. Some of the other announcements made by the Finance Minister on the taxation front are also positive steps. These proposals and announcements, if implemented effectively, should have a positive impact on industry," he said.
Read complete story at Economic Times.