Mr. Sunil Rekhi, CFO, Nissan Motor India Pvt Ltd today spoke about the Interim Budget 2014 Excise Duty Cut. He said, “It is a welcome move for the Economy, particularly for Auto sector which is looking for strong support from the Government for a growth stimulus as it is struggling with the negative growth for most part of this year. As Auto Sector is the backbone for economic growth in terms of huge employment provider, through its entire value chain starting from Tier N Vendors to end retail sector and related industries including Financial/Logistics/Services/Infrastructure.”
He added, “We believe that this reduction in Excise Duty will reduce the acquisition price. Thus making the vehicles more affordable which should improve the consumer sentiment and hopefully revive negative growth for vehicles.”
Mr Rekhi went on to say, “Interim Budget is a welcome step from the Government, the Fiscal deficit is contained at 4.6% as against the estimate of 4.8%. Finance Minister has also laid down the path for the new Government by setting up target of 3% Fiscal deficit by year 2017. He has transparently shown the path for Government borrowing program and the borrowing is expected to be lower than what was expected.”
Current Account Deficit is projected at 45 Bn USD and Forex reserves are expected to rise 15 Bn USD for the year 2013-14, which are resulting from strong measures like Hike in Import duty Tariff on Gold etc.
He added, “Acceptance of ‘One Rank, One Pension’ is a good measure, as it would make the funds available in the hands of the pensioners which would boost the spending and indirectly improve the economic growth.”