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AUTOMOTIVE INDUSTRY ACMA welcomes continuity in bolstering of Indian economy in the Budget

Feb 3, 2021

The Union Budget 2021 focused on infrastructure, PLI, scrappage policy, R&D, rural & agricultural sector augers well for the automotive sector. Also, the basic customs duty on select auto components is enhanced to 15%.

ACMA, the apex body representing India’s auto component sector, expressed satisfaction on the measures announced in the Union Budget especially for the focus on health & well-being, infrastructure, inclusive growth, human capital, innovation & R&D and reforms in governance.

Thanking Nirmala Sitharaman, the Union Finance Minister, India, Deepak Jain, President, ACMA, asserted, “The vision of an Atmanirbhar Bharat enshrined in the Union Budget, coupled with the ‘Sankalp’ of ‘Nation-First’ will be the bedrock to propel us further as we redefine our economy in a post-pandemic world. Significant outlay for vaccination in the country will add to the confidence of a resurgent India.”

“Announcements with regards to increased spend on road infrastructure, voluntary scrappage policy, Research & Development and PLI among others, augur well for the automotive sector. Further, continued focus on building rural and agricultural infrastructure and prioritising agriculture credit growth will have long-term positive impact on rural demand for vehicles,” added Jain.

Jain further mentioned, “Increase in basic customs duty on select auto components will encourage local manufacturing for such items. It is also heartening that the budget outlay for the MSME sector has been doubled compared to last year. The auto component industry is dominated by MSME and this will provide them the necessary succour as the industry recovers.”

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