The Automotive Component Manufacturers Association of India (ACMA) has welcomed the measures announced in the Interim Budget as these will boost the economy and making it inclusive. The industry body expressed satisfaction on the focus on the development of the rural economy, middle class, infrastructure, health and education, ease of doing business, attracting investments and encouraging digitisation.
“The Budget is indeed inclusive, growth oriented and technology focused. It lays a strong foundation for India’s economic growth for the next decade. The budget has given a much-needed focus to growth and development of the rural economy by extending necessary incentives to it. Further, increasing the zero tax income limit to Rs. 500,000 will be a shot in the arm for the middle-class thus boosting market sentiments. These measures will lead to improved sales of automotive products, especially two-wheelers, farm equipment and entry level passenger vehicles which in turn, will fuel growth of the domestic auto component industry. With an eye on leapfrogging the country on technology front, the setting up of a National Centre on Artificial Intelligence is truly welcome. This will facilitate development of newer skillsets in the wake of the disruptive technological trends being witnessed by the automotive industry,” said ACMA President Ram Venkataramani.
ACMA has urged the Government to define a technology agnostic road map for xEVs (hybrid and electric vehicle), with a well-outlined plan for component manufacturing to support the same.
“The import tariff on components for xEVs is progressively enhanced to 15 percent to realise the vision of ‘Make in India’. That apart, enabling research in component development for xEVs through a Technology Development fund is also the need of the hour,” Ram Venkataramani pointed out.