Extension of excise benefits, and Finance Minister’s proposal to boost savings through revised tax structure would strengthen positive consumer sentiment. He expects the government to continue its pro-reform outlook and introduce a roadmap for implementation of GST to benefit business, and auto industry.
Mr. Kenichiro Yomura – President Nissan India Operations said budget 2014 is based on fiscal competence while being progressive. He appreciated the Finance Minister’s considerations and aim to achieve 7-8% GDP in 3 to 4 years. Reforms announced include FDI liberalization in defense and insurance. Measures to support local manufacturing and remove retrospective taxation are key factors from a larger macro-economic perspective.
Previous fiscal proved to be difficult for the Indian auto industry, and bolder reforms were expected to favour it. An earlier decision to continue excise duty concession till December 2014 coupled with reduction in steel prices and elimination of customs duty on auto components would favour auto sector.
Union Government’s intent to move towards a GST regime is a positive development and quick implementation would yield results. The need for a robust and streamlined indirect taxation structure will boost customer confidence to spend more, and could have a positive impact on car shopping too.
Nissan was expecting a government move that would be a fillip towards making green vehicle technology a reality in the Indian auto industry in order to bring its electric and hybrid vehicles to Indian customers.