Vikram S Kirloskar, Vice Chairman, Toyota Kirloskar Motor Pvt. Ltd and
President of Society of Indian Automobile Manufacturers (SIAM) complimented
the Finance Minister “for announcing the pro-India budget that would strengthen
the social fabric, improve governance and tax rationalization. Overall, it is a
positive budget for both corporates and individuals."
Arvind Saxena, President & Managing Director, General Motors India
said that “The budget looks to be a pragmatic one as it focuses on
infrastructural development, education, skill development, agriculture,
irrigation, health care, social security schemes etc. Given the condition of the economy, the
direction given in the budget is a positive one and the call for fiscal
prudence looks good. The government’s
intention to introduce GST, reduce the corporate tax from 30 to 25 per cent
over a 4 year period, simplification of the tax regime, financial sector reforms,
GAAR deferral etc are encouraging news.”
Saxena felt that the steps
outlined for the manufacturing, power, coal and mining sectors should spur
economic activity going forward. “Having
said this, a monitoring mechanism
should have been in place to ensure timely implementation of the projects in
these sectors. As far as the automotive industry is concerned, we were
expecting excise duty cut on all categories of vehicles as the auto industry
continues to bleed due to high interest rates, economic slowdown etc. There are
some changes in CST and also on customs duty which need to be clarified from
the fine print. Having said this, the focus on rural roads, highways,
expressways, incentives for electric vehicles are welcome decisions. Some of the other announcements made by the
finance minister on the direct taxation front are also positive steps. Overall, the budget lays down a blue print
for a stable tax regime that can lead to growth in the economy. These proposals and announcements made in the
budget, if implemented effectively, should have a positive impact on industry
and the economy as a whole going forward.
The challenge now is the implementation of the proposals. Our hope is that the market will respond
favourably,” he added.
Rajeev Singh, Head of
Automotive sector, KPMG in India said that the 2015 -16 budget has had no
direct impact on automotive industry at large other than an announcement in the
EV segment. “However, increasing disposable income in rural areas will improve
penetration of passenger vehicles and two wheelers. Credit of Rs 8.5 lakh crore
to farmers announced in the budget 2015 will indirectly boost the agricultural
equipment and tractors segment. The government is aligning to ensure at least one
family member will have an economic route to support the family indirectly,
this would improve the sentiments of entry level two wheelers,” he said.
He noted that investment in
infrastructure will go up by Rs 70,000 crores, revitalisation of PPP model of
Infrastructure, development of 1 lakh kilometers of new roads will have an
impact on commercial vehicles which has had a negative growth last year.
“ Later in the budget, the
government proposed allocation of Rs 75 crore towards electric mobility to move
to next level of clean technology. The industry can only be hopeful that this
would boost the consumer confidence. However, lack of EV infrastructure in
India will make it difficult for the segment to move at a fast pace,” he
pointed out.
He concluded by saying that
the government did not make any big bang announcements but stable investments
made across agriculture, infrastructure, manufacturing, various segments of the
society, etc. are focused towards a steady growth.
SM Lodha, Chairman, Indsur Group of Companies in a press release
stated, "The announcement that the much awaited Goods and Service Tax
(GST) will be introduced on April 1, 2016, will definitely rejuvenate the
industry. GST will make manufacturing
more competitive and support the 'Make in India' Campaign. How fast the Finance
Minister will move the wheels of change to usher in GST will be keenly watched
in the coming days.
“While other than
infrastructure spending there are no visible and concrete steps that could be
seen on the 'Make in India' campaign. However reduction in corporate tax will
benefit only few large state-owned enterprises and corporates. The budget will
not inspire the business communities as a whole, all said and done much more
was expected which could have benefitted all sections of society." Indsur
Group is a Mumbai-based global business house with operations spread over in
more than five countries. The group has
strong presence in manufacturing of steel castings, auto components, pipes,
steel and steel related products.
Sumit Sawhney, Country CEO and Managing Director, Renault Operations in
India said that it is a “well-balanced budget. It included a lot of
positive measures to give impetus to infrastructure growth. Another positive
was the announcement of a firm date on GST, which was a key pre-budget
expectation. Although we will have to study the fine print of the budget in
terms of clear programmes to boost investment, manufacturing and skill
development, the directional focus is in sync with the overall expectations to
boost growth. Taking cue from what was
shared about reform being a continuous process, we hope for ongoing measures
and policies to maintain a healthy balance between interest rates, inflation
and arrest the fall of the rupee, which will benefit the economy. Although the
budget didn’t have much for the automobile sector, we are hopeful for some
pro-business policies in the near future to benefit the industry."