Government push can pave way for Indian auto industry growth
Coronavirus pandemic-induced slowdown has impacted industries across sectors including the auto industry. Automobile and its allied industries were also drastically impacted due to production shutting down due to lockdown. However, the sector in all set to recover from the stalled growth and is witnessing a resurgence as witnessing a resurgence as sales numbers look positive over the last couple of months.
According to reports, the Union government has suggested some production linked incentive schemes that will augment local production and procurement for export in sync with its vision of an ‘Aatma Nirbhar Bharat programme. In addition to that, manufacturing of Hybrid and Electric Vehicles and National Electric Mobility Mission Plan (NEMMP 2020) have also been initiated recently with an aim to support hybrid/electric vehicles market development and ecosystem.
Furthermore, different central and state policies are also propelling the production and sales of green vehicles. Other consumer-friendly measures taken by the government include reduction in corporate tax, increased budgetary outlay on the infrastructure sector, increase in liquidity to financial institutions and linking of repo rate to interest charged on vehicle loans, reduction in GST for e vehicles and rebate in Income Tax, etc.
The automotive industry supported by the ‘Aatmanirbhar Bharat’ program along with a conducive business environment can accelerate growth of Indian economy and turn it into a global manufacturing hub in the coming years.