Central Excise Law amendment benefits Indian auto industry
Indian auto component sector’s apex body ACMA welcomes Union Budget announcements that are a bid to foster national economic growth. Focus on infrastructure development, education, skilling, infrastructure development and attracting investment are being hailed.
ACMA also heralds sustaining growth and scaling-up of the MSME sector as a sign of better things to come. President ACMA, Mr. Harish Lakshman welcomes Union Finance Minister, Arun Jaitley’s pragmatic budget with focus on developing the social sector, industry and infrastructure. Intended implementation of GST and DTC at the earliest, and encouragement to Micro, Small and Medium sector (MSMEs) including revision of its definition are much needed changes.
MSMEs constitute over 70% of ACMA’s membership and the sector has faced challenges when scaling up. The government’s decision for 15% allowance to companies investing more than Rs 25 crore in new plant and machinery will garner investments in manufacturing sector, including automotive.
Manufacturers can take a sigh of relief in regards to Central Excise Law amendment to overcome impact of Supreme Court’s Fiat judgment, a longstanding demand of the manufacturing industry, especially auto industry.