Infrastructure development has always been prerequisite for growth, which has been taken well into consideration in Indian budget 2019, said Rohit Saboo, CEO & MD, National Engineering Industries. The government’s strong focus on boosting infrastructure and connectivity with an investment of Rs 80,250 crore for phase three of the Pradhan Mantri Gram Sadak Yojana, will bring positive sentiments for the sector by increasing demand for transport, he said.
“These measures will surely lead to improved sales of automotive products, especially two-wheelers, farm equipment and entry-level passenger vehicles which in turn, will fuel the growth of the auto components industry. The increased focus on safety and modernisation of railway infrastructure supported by a public-private partnership to unleash faster development will further promote innovation and creation of state-of-art technology in the sector. Additionally, substantial mention of electric mobility in the Union Budget is a humbling acknowledgement for the nascent industry. An amount of Rs 10,000 crore earmarked for the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), GST reduction and tax reductions is indeed a welcome move as it will make electric vehicles affordable for consumers,” Rohit said.