New Delhi:ICRA expects the Government to maintain its focus on the rural economy and infrastructure investments in the upcoming Budget. This apart some roadmap for the recently announced production-linked incentive (PLI), can be expected.
“Another long pending auto-specific policy, relating to the scrappage of Commercial Vehicles (CV) may also find a mention in the Budget. The automotive industry faced strong demand headwinds during FY2020 with the slowdown in economy during H2 FY2020, exacerbated by the NBFC crisis.
The industry also had to grapple with challenges of investments and cost increases, following the tightening of emission & safety norms, especially the BS-IV to BS-VI transitions. On the back of these challenges, came the Covid-19 related lockdown, which disrupted manufacturing activities, supply chain and most importantly affected consumer demand during the first six months of the current fiscal. The automotive demand, however, has been on a mend since then, with strong sequential recoveries across most segments,” ICRA has said in a report on Union Budget Expectations.