Renault India, a wholly-owned subsidiary of French auto maker Renualt, said the forthcoming Indian Budget 2017-18 should focus on implementing GST and Vehicle Scrappage policy.
The maker of India’s popular compact car Renault Kwid said the Indian automotive industry is instrumental in shaping the country’s economy and has been a major employment and GDP contributor due to which it is regarded as a ‘Sunrise sector’ under ‘Make in India’.
Sumit Sawhney, Country CEO and MD, Renault India Operations, said, One of the focal decisions for the automotive sector from this budget is on the GST roll-out, and how different vehicle categories will be taxed.”
Another area that deserves attention in the budget is the vehicle scrappage policy or the proposed ‘Voluntary Vehicle Fleet Modernisation Plan (V-VMP)’. This programme will keep older cars off the roads and benefit the environment. Further it will also lead to reduce fuel consumption and propel further demand for greener and efficient vehicles, Sawhney said.
Owing to multiple macro-economic factors, he said the Indian automotive industry has not achieved its growth potential during the past few years.
The forthcoming Union Budget 2017-18 announcements thereby will be keenly observed by the automotive industry, which expects the government to introduce pro-business measures to boost the industry.
This year’s budget is coming at a time when key macro-economic factors, such as, inflation, fiscal deficit and current account deficit are within manageable range.
Therefore, the time is opportune for the government to introduce a revolutionary budget that can uplift consumer sentiment and put the industry in a higher growth trajectory.
Renault India CEO has also listed out a few measures that will give a further fillip to the automotive industry in the coming year. The suggested measures include Income and corporate tax reduction to boost consumption and investment. Restoration of weighted deduction of 200 percent on R&D expenditure to enhance spends on R&D and create relevant infrastructure and increasing FTA’s and investment in port infrastructure to optimize export opportunities. Facilitate greater ease of doing business to attract more FDIs and focus on ‘Skill India’ with adequate emphasis on job creation and entrepreneurship for all socio-economic classes.