ACMA, the apex body representing India’s auto component sector, hailed the government for the measures announced in the Union Budget, especially for the focus on inclusive growth, development of infrastructure & logistics, ease of doing business, the enhanced outlay for capital expenditure, the impetus to growth & development of MSMEs and skilling & education.
Sunjay J Kapur, President ACMA, said, “Setting the direction for creation of urban fossil fuel-free zones, policy for battery swapping and energy as service and incentives for creating a vibrant startup ecosystem, India could soon emerge as a forerunner of green mobility solutions for the world.”
“ACMA is also delighted by the measures announced for the MSMEs. The auto component industry is dominated by small players and the extension of the ECLGS (Emergency Credit Line Guarantee Scheme) and its cover, revamping, and infusion of funds into the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme combined with the Raising and Accelerating MSME Performance (RAMP) programme will help the MSMEs stay relevant and competitive,” Kapur said.
The Budget also announced a reduction in duty on some commodities such as pig iron, ferroalloys, ferrous products etc., as also on copper and aluminium scrap, and removal of anti-dumping duty on some steel items, which will help alleviate the current challenge of availability of raw materials in the automotive sector. That apart, the opening of the Defence R&D to the private sector will create yet another opportunity for the auto component sector, he added.