While the Indian automobile and automotive component industry must have heaved a sigh of relief that there were no additional taxes imposed in the proposals of the Union Budget FY2017-18 announced today by finance minister Arun Jaitley, the lack of any direct benefits would also have left CEOs and company heads a tad disappointed. Here was a chance to give a leg up to the fledging electric vehicle industry through more incentives to the FAME India scheme, restore the weighted deduction of 200% on R&D expenditure in the wake of the domestic auto industry having to tackle BS VI in a scant four years, and eliminate/reduce customs duty on alloy steel and secondary aluminium alloy as apex component industry ACMA had recommended. Instead, what most companies, barring a few, will have to contend with is growth filtering down from the promised increase in Budget spend on the rural sector and infrastructure development across the country. Clearly, it will be a case of wait and watch for the auto sector as the finance minister said the benefits of the recent demonetisation exercise will kick in after a few months, adding that, “India stands out as a bright spot in the world… Read full this story
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