- Rajan Wadhera (Chairman,SIAM) has issued a statement over non inclusion of Indian Automotive Industry in ‘Aatma Nirbhar Bharat Package‘.
- Last year, Indian Automotive Industry had experienced the de-growth of 18% in the last financial year.
- SIAM has suggested the government to reduce GST from 28% to 18% for the time being.
Undoubtedly,this COVID-19 pandemic gave a jolt to the economy.Almost all the sectors are drastically affected by the pandemic.One of the most affected sector is Indian auto sector,which had already faced unprecedented de-growth of 18% in the last financial year.All these factors combinedly made Indian automotive industry in a bad shape causing huge losses to the manufacturers as well as to the dealers & distributors of various vehicle brands.
Last year,Indian Automotive Industry was in news because it faced one of the worst unemployment phase of the decade.To already debilitating condition of the Industry,Covid-19 has added to its suffering.Initially,the 21 day lock-down and now this extended lock-down.With no work and declining demand,SIAM was expecting some relief measures regarding same in the recently launched ‘Aatma Nirbhar Bharat Package‘ to boost the industry.But to no avail for the Indian Automotive Industry.
Do you know that Indian Automotive Industry supports employment of more than 3.7 crore people & contributes to 15% of GST amounting to Rs 1,50,000 crore every year.
Assessments made by the SIAM : The impact of the covid-19 on demand for vehicles in the current financial could have a de-growth in the range of -22% to -35 % in various industry segments,if the overall GDP growth is at 0%-1% for the FY’21.
Recently,to bring forth the economy the Govt has introduced much needed ‘Aatma Nirbhar Bharat Package‘.Government has included MSMEs, NBFCs & the Agri Sector.Indian Automotive sector was also expecting some relief measures from the package but to the hard-luck of the sector,it was not included in the package.Although,SIAM has welcomed the package to focus on the local businesses and agri sector but it was also expecting some package to boost the Indian Automative Industry.The SIAM had already held several meetings with the government at various levels to make suggestions and demands on behalf of the sector.
Suggestions made by SIAM to the government :
- Reduction in GST base rate from 28% to 18%.
- An incentive based vehicle scrappage policy.
- Include Dealers into MSME act by changing the latter’s definition.
After the announcement of the package by Hon FM, SIAM President Mr. Rajan Wadhera also appreciated the move.According to him, the Indian auto sector can get some relief from the Agri sector indirectly.Yet, he also cleared that in order to boost the auto sector’s demand & supply chain, government needs to take thorough & quick actions.He made sure that the SIAM will be in constant contact with the government for the revival of the Indian Automotive industry.
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