PM Modi can make big announcement regarding auto sector

Jun 30 2020 07:36 PM
PM Modi can make big announcement regarding auto sector

The coronavirus has severely affected the automobile sector, but expectations about prospects are not yet over. The government is considering giving relief to the domestic automobile sector in the current environment, which will not only help increase the demand in the domestic market, but also establish the domestic industry as a strong alternative to China in the global market. The automobile sector is expected to be given some relief as was given during the recession of 2008-09. Under this, the government also has the option of relief in duties.

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Sources in the automobile sector on this matter said that they have held talks with representatives of their government in several stages. It is being agreed that there is a need to provide a big relief package to this sector which provides direct and indirect employment to 10 lakh people in the country. The industry has been demanding that the GST rate be given relief since last year's recession. Earlier, the argument from the government was that the auto sector cannot be given tax rate relief given the revenue collection situation. Now automobile sales have cooled down. If the domestic demand increases by reducing the GST rate, then it will also increase the revenue of the government. This package will also establish India as a reliable alternative to China in the automobile sector. At present, GST is 28% on the auto sector.

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In the current global environment about China, there is a possibility that there will probably be a doubt about China-made automobiles. India can take advantage of this situation. Recently, the Chief Minister of Tamil Nadu has invited 11 big automobile companies of the world to set up plants in their state. Many of these companies are in China. The central government's package will be in keeping with these companies too.

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