FM Proffers Hope to Auto Sector

New Delhi, India – The Union Finance Minister Nirmala Sitharaman recently announced a slew of measures, including ones to empower the auto sector, to revive economic growth. The Indian automobile sector contributes 7.5 percent to the country’s GDP. However, the industry is facing major headwinds both at the global and domestic level. The Finance Minister dispelled confusion regarding the switch to BS VI emission standards. All BS IV vehicles purchased up to March 2020 are to remain operational for the entire period of registration. Additionally, the proposed increase in the one-time registration fees for the new vehicles has been deferred until June 2020. To help boost demand, along with 15 percent depreciation an additional 15 percent depreciation on all vehicles has been announced until March 2020. The Government’s focus, she assured, will be on setting up the infrastructure for the development of ancillaries and components including batteries for export. Public Sector Banks (PSBs) will get an upfront funding of `70,000 crore through recapitalization, which will bring in more liquidity.

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