Vehicle scrappage policy to drive growth in the automobile industry
In the 2021 Union budget, it was mentioned that the government is planning on extending the life of passenger vehicle and commercial vehicle by five years each. This will act as a catalyst for the automobile sector in India. The vehicle makes an important part of life for any human being and larger economic life for it only means better ROI for the users. Furthermore, it is also going to make the auto industry more robust in the coming decades.
In addition, the government allocation of Rs 18,000 crore for infrastructure will certainly boost the automobile industry. Also, India adopting global standards for scrapping vehicles will only create a more holistic ecosystem for the industry.
The slowdown caused be covid-19 pandemic is fading out with top sectors on the path of recovery owing to rising demand and new government policies. Automobile sector is also gaining traction due to impetus towards domestics manufacturing and foreign investments.