Interim Budget 2014/15 – Reduction in excise duty for cars
Interim Budget for the financial year 2014/15 was presented today by India’s Finance Minister P. Chidambaram. According to the interim budget, Mr Chidambaram has given a much needed respite to the auto industry by reducing the excise duty.
Here is a quote from Dr. Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants on the reduction in excise duty. “The reduction in excise duty gives the automotive industry a much needed relief after many quarters of demand side challenges. The action of government is welcome, but we reiterate the need to fix the basics of the Indian manufacturing model. We need good infrastructure (road, ports, etc.), reliable and competitively priced electricity and flexible labor laws that allow linkage between salary increases and productivity gains. Consistent policies must help to address the root causes of weak consumer sentiment such as high interest rates, stubbornly high inflation, and increasing fuel prices.”
Stay tuned. We will add more quotes from auto industry heads as and when available.