Auto mobiles are eying on the budget '11
Indian auto market has shown expectational growth which has marked a new chapter for itself in the Indian economy. The demand for the auto mobile surged so much that component suppliers were falling short of parts resulting in long waiting period to deliver the cars. Even with increasing fuel prices in every fortnight, or increasing car prices or increasing interest rates never were an obstacle in the growth.
For this years budget the auto mobile are eying with expectations on the Indian government to receive phenomenal output of the growth. The issues of supply constraints, increasing fuel cost and such factors which may hamper the growth should be dealt by government.
If looking at the exports they are a worry as due to slowdown globally the American and European auto markets has affected the exports greatly. In this budget the government should be considering green technologically advanced cars. Also additional incentives should be given to prompt the development for environment friendly cars. Also reduction on the custom duty on hybrid cars. Also government should greatly pay heed to the auto biggies who are planning major investments in the sector. The accelerating deprecation, easy loans and reduction on duties can help more investments from the auto giants.
The government can also look forward to outsource the development research programmes which will help in expansion of the talent in India. Minimum Alternate Tax (MAT) rate which is continuously increasing should be slashed half of the normal tax rate which can help in distinguishing between the same.
For the last year the Indian auto mobile contributed to the growth of the Indian economy which has led the auto manufactures to look forward to a great budget for this year.
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