Budget 2020 Reaction: What Federation Of Automobile Dealers Associations has to say

Union Finance Minister Nirmala Sitharaman on Saturday presented the first Union Budget of the third decade of the 21st century.

Nirmala Sitharaman unveiled a series of far-reaching reforms. Reuters photo.

Union Finance Minister Nirmala Sitharaman on Saturday presented the first Union Budget of the third decade of the 21st century. Nirmala Sitharaman unveiled a series of far-reaching reforms, aimed at energising the Indian economy through a combination of short-term, medium-term, and long term measures.

Federation Of Automobile Dealers Associations (FADA) President Ashish Harsharaj Kale reacting to the Budget 2020-21, "The budget presented by Hon’ble Finance Minister Mrs Nirmala Sitharaman is an inclusive budget. The budget's focus on Agriculture, Irrigation and Rural Development will have a rub off effect on rural demand in the next 3-4 months if all the measures are actioned immediately and will give a fillip to rural auto demand, especially 2W, Tractors & small CVs."

Kale adds, "A budget allocation for an attractive incentive based scrappage policy would have been a demand booster for commercial vehicles and also a positive for cleaner environment and road safety. Even though GST is not a part of budget, an indication of rationalisation of GST rates in automobiles would have also brought much respite for the industry."

“On the other hand, liquidity support for NBFCs will act as a confidence booster for them to lend, helping the auto sector. The Income Tax amnesty scheme will also free up allocated resources and will thus help businesses to allocate fund for growth. The continued focus on Infrastructure and especially highways will support CV demand at current levels till high growth revival. The personal Income Tax rates under the new regime, if are net tax positive for the tax payers will act as an immediate sentiment booster, especially for the 2W and entry level passenger vehicles,” Kale concludes.

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