Union Budget 2020 expectation: Robust implementation of the auto scrappage policy, Ravi Chawla, Gulf Oil Lubricants India
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 updates 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 Ravi Chawla, Managing Director, Gulf Oil Lubricants India Ltd.
Ravi Chawla, Managing Director, Gulf Oil Lubricants India
"We are looking forward to a steady growth-oriented budget from our honourable finance minister to give a positive impetus to the economy. We majorly expect some reforms to boost the Auto sector as it has seen a significant slowdown. We hope to see measures aimed at increasing the liquidity in the hands of consumers (including possible personal income tax benefits) which can stimulate spending in this sector. We also hope to see a robust implementation of the auto scrappage policy. We hope the government continues its thrust on infrastructure to strengthen and propel us forward on the path to higher growth once more."