Union Budget 2020 expectation: Provide incentives for investment in manufacturing units, J.K. Gupta, Tata Technologies Limited
The upcoming Union Budget 2020 is being seen as one of the most important events for the Indian automobile fraternity who has huge expectations from it. It will be presented by Finance Minister, Nirmala Sitharaman on February 1, 2020, making it the second budget for the Narendra Modi-led government. What makes it an important one is the fact that the Indian economy that has already been facing a low phase with the low 2019-20 GDP growth of five per cent which is the lowest in 11 years. Considering the huge contribution of the automobile sector in the Indian economy, corrective measures to improve the state of affairs are being expected in FY 2021. The industry slowdown continues to dampen the sales and demand in the country. Several players in the industry have started voicing out their expectations from the Union Budget 2020, which includes update in the GST Tax rates, reducing custom duties in certain parts and also incentives in exports, all of which would bring some respite to the industry. Here is a quote from J.K. Gupta, Chief Financial Officer, Tata Technologies Limited.
J.K. Gupta, Chief Financial Officer, Tata Technologies Limited
"As a leader in the Engineering Services sector, our company is at the intersection of two key industries the manufacturing industry on the customer side and the IT services industry from a supplier perspective. Certain recent initiatives by the government such as the Corporate Tax cuts and incentivising the manufacturing of Electric vehicles are great boosters for manufacturing customers. These moves encourage them to invest more in newer products and allow Tata Technologies to leverage its Product Engineering expertise especially for Electric Vehicles. However, we believe the government should continue to focus on 'Make in India' in the forthcoming Budget and provide further incentives for investment in manufacturing units. Further, GST rationalisation for Automotive products can provide great support to OEMs who have been fighting the continued automobile slowdown, while supporting the transition from BSIV to BSVI."