Mixed emotions are raised due to the interim budget from the companies and auto industry experts in India. Mr. Pranab Mukherjee, the External Affairs Minister of India has presented the interim budget yesterday on the behalf of the Prime Minister Manmohan Singh. As per the agreement by leading industry lobby, there were neither specific kind of relief sops nor tax sops for the industry but maximized allocation to surface transport ministry and defense would lead to higher sales.
The lobby said,
“We hope the government would shortly come up with further fiscal and monetary measures to revive the growth including extension of earlier announced measures, thus addressing such sectoral measures that could not be a part of the interim budget.”
Since last seven months, negative sales growth has been recorded in the country by Indian auto industry. Even the outlook for the next months doesn’t look any brighter either. The commercial vehicle segment hit the worst position with sales lessening by 50.96 percent. Also there is declination of 6.9 percent in the sales of the passenger car segment. The industry experts’ ultimate overview remains unconvinced about anything positive about the budget on the market or the industry sentiments.
Mr. Murad Baig, the Auto Analyst said,
“It’s not necessary that increased defense spending will convert into sales of busses and trucks, neither can the JNNURM funding be directly attributed to sales in the coming days.”