Comprehensive economic package announced - Here's what the automobile sector has to say
The Rs 20 lakh crore worth comprehensive economic package announced by Prime Minister Narendra Modi aims at making the country self-capable, thereby also encouraging Make-in-India initiatives. The package also includes the announcements by union finance minister and the Reserve Bank of India (RBI) and is called the Aatma Nirbhar Bharat Abhiyaan. The economic package amounts to 10 per cent of the country's GDP, mentioned Narendra Modi. Here's the reaction of Rajan Wadhera, president, SIAM on announcements made by the PM.
Rajan Wadhera, president, SIAM
"India has delivered in the fight against COVID-19 on the medical front. Now the promise of Rs 20 lakh crore comprehensive economic package announced by the Hon'ble Prime Minister, focussing on economic activities and an overall aim of a self-reliant India, will provide the right boost to demand and growth of our economy once again. The Indian Automotive industry is a strong pillar of Make in India with huge contributions to GDP and employment and relies on its highly-indigenised supply chain. We are hopeful that a focussed package to support the Indian Automotive Industry would be announced by the Hon'ble finance minister, when she announces the details of the package."
Vipin Sondhi, managing director and CEO, Ashok Leyland Limited
"The address by our Honourable Prime Minister, has lifted spirits and created positive sentiments. It was inclusive, comprehensive and compelling. While we await the details, the announcement of reforms-cum-stimulus to the tune of 10 per cent of GDP, amounting to Rs. 20 lakh crores has the potential to be sustainably beneficial to all sectors of the economy. Industry and in particular the CV industry will stand to gain as well as the economy starts to move again. The massive thrust on self-reliance, along with the focus on creating local demand, and resurrecting local supply chains should provide enough impetus to kickstart the economy. All these measures are the need of the hour and frankly more than expected given the limited fiscal room that was available. With the pride of Make in India through quality, we look forward to a stronger, self-reliant India where everyone prospers," commented Vipin Sondhi, managing director and CEO, Ashok Leyland Limited.
Nagesh Basavanhalli, MD & CEO, Greaves Cotton Limited
"Prime Minister's special package of Rs 20 lakh crore focussing on #MakeInIndia and local manufacturing is a good step for economic revival. The quantum of package has come across as a pleasant surprise and does have the potential to jumpstart the manufacturing sector among others. Any effort to get us self-reliant is a welcome one and one that can insulate India from the economic impact of COVID-like situations to a large extent. The industry is now looking forward to the finer details of this enormous package. All eyes now on the finance minister," commented Nagesh Basavanhalli, MD & CEO, Greaves Cotton Limited.
Naveen Soni, Senior Vice President, Sales & Services, Toyota Kirloskar Motor mentioned, "We appreciate the Government's efforts to elevate the economy during these difficult times. Now, with the focus shifting towards reopening and strengthening the economy in order to maintain business continuity and sustain jobs, the announcement of the economic package by the honourable Prime Minister comes as a welcome relief. We welcome the message for India to be self-reliant and the need to introduce strong reforms, which will further strengthen the Indian auto industry which is one of the key pillars of economic growth and has the distinction of having a globally competitive and very well developed supply chain with high level of localization. The stimulus package of INR 20 trillion is comparable with the measures taken globally and will definitely boost morale of the stressed sectors and industries, especially the MSMEs. Furthermore, the reclassification of the MSME sector, based on investment and turn over will open up various enterprises to remain as MSMEs, aiding cash flow with collateral free loans. The Government is taking measures to boost the supply side of the economy and we now await their support to boost the demand side where govt spending can boost a faster revival of the economy.
He further added, "We at Toyota have been strongly supporting the Government's 'Make in India' initiative and have introduced various initiatives over the years through localization of parts and components, empowering local suppliers and promising quality at par with the global standards. We hope, through this new stimulus and the likely reforms, the industry will be able to iron out bottlenecks pertaining to liquidity, supply chain, demand, labour related issues and restore the economy in an effective manner. Given the current situation, we understand that we will have to operate alongside COVID-19 for a prolonged period. However, through this initiative, the Government has inspired us to strengthen our preparedness and confidence to resume business operations while safeguarding the health and safety of all stakeholders. The relief package announced by the Honourable Finance Ministry today will certainly support in helping the MSME sector, NBFCs and also help in building demand in the lockdown 4.0 phase. We look forward to cater to our valued customers during this time of distress and will continue to support the Government in this fight against the COVID-19 epidemic."
Venu Srinivasan, Chairman, TVS Motor Company
Venu Srinivasan, Chairman, TVS Motor Company states, "We welcome the comprehensive and highly progressive measures announced by the Finance Minister, injecting much-needed liquidity for non-banking finance companies (NBFCs) and MSMEs (micro, small and medium enterprises). The announcement of Rs 3 lakh Crore collateral-free automatic loan is an exemplary move to boost the industry sentiment. This will augment liquidity and help MSMEs revive the business during these challenging times. The large credit guarantee will be a great step to restore the supply chain which was heavily impacted by the shutdown. The massive fiscal stimulus will help improve the impacted financial system and the positive business perception will stimulate demand. These measures will kick-start financial activity and help rebuild the economy during the pandemic."