The Union budget of 2016 is just a couple of days away and prior to that, auto industry too, like every other industry, is holding high hopes from it. Renault India has shared a document that details Mr. Sumit Sawhney, Country CEO & Managing Director, Renault India Operation's expectations from the budget.
Sumit Sawhney hopes that the Government uses the budget to include some automotive sector friendly and pro-business policy decisions which will help boost this important sector which is one of the key driver of countries growth. The industry is hopeful that the excise duty reduction is reintroduced, as from a long-term perspective, a unified excise duty structure will go a long way to benefit the industry. Another longstanding request is the introduction of a scheme for scrapping of old vehicles which will keep older cars off the roads. This will benefit the environment, reduce fuel consumption and also propel further demand for greener and efficient vehicles.
Moreover, the folks at Renault look forward to policies that will create more incentives for environment-friendly vehicles. With the Government stipulating that India will directly move from Bharat Stage IV to VI emission norms in 2020, companies have their task cut out in earmarking investments for new technologies. It is in this context that the auto industry is hoping that the Centre will offer substantial incentives to promote hybrid and electric cars, and also develop the necessary infrastructure to make this a viable solution.
The company is also looking forward to the implementation of the GST bill, which will play a significant role by creating a uniform tax structure across all states. The Budget should also address reviving rural demand, and in this context, the implementation of 7th Pay Commission will be an important growth driver. With the drive towards ‘Make-in-India’ and ‘Skill India’, incentives for the development of innovation and skills at a local level will be important. The French automaker also looks forward to ongoing measures and policies to maintain a healthy balance between interest rates, inflation and arrest the fall of the rupee, which will benefit the economy.