Uno Minda Group – Sunil Bohra, group CFO

2021 will be the year of recovery for the entire economy globally and in India. The Indian automobile industry will play a prominent role in the revival of the Indian economy. Industry-focused plans, policies and support by the government will energize the industry and sustain the momentum. The Budget should focus on strengthening the manufacturing sector, in keeping with the government’s visionary Make-in-India and Atmanirbhar Bharat initiatives. The government has already taken some positive measures in this direction with the introduction of Production-Linked Incentive (PLI) scheme, but there is a need for more clarity.

The automobile sector has experienced a rough phase for over two years now. The industry witnessed some of the major technology upgrades in terms of emissions and safety standards, besides going through the worst slowdown cycle, which was exacerbated by the Covid-19 pandemic. Being optimistic, there is a belief that the worse is behind us.

The government can play a critical role in reviving the industry confidence. It should reduce the GST rate to 18% from 28%, introduce a scrappage policy, along with an incentive or tax rebate. All would welcome a special allowance or rebate on R&D on green vehicles such as EV, hybrid and other alternate fuel vehicles.