Budget for fiscal 2020 - 21 brought a slew of government measures to light for reviving domestic economic growth, boosting income of Indians and their purchasing power. India estimates economic growth this fiscal year, which ends on March 31, will slip to 5 per cent - its weakest pace since the global financial crisis of 2008-09.
According to Deepak Jain, President, Auto Component Manufacturers Association (ACMA), "Focus on electronics manufacturing including electronic equipment and semiconductor packaging is welcome and will encourage manufacturing of auto-electronics and components of electric vehicles."
Making in India is likely to get impetus from government measures to strengthen checks on imports due to the free trade agreement, review of rules of origin, enhancing safeguard duties and invoking quality control order on import sensitive items, he added.
Prashanth Doreswamy, Managing Director, Continental Automotive India & Country Head, Continental Group India said measures for renewable energy stations will aid in power generation as we transition to electric vehicles. Given the impulse of connected technology both in mobile phones and vehicles, a policy that enables the private sector to build data centre parks will help enhance connectivity and digitisation, which will also benefit our sector.
Focus on electronic and semiconductor manufacturing will be a big boost for FDI (foreign direct investment) and the scheme will promote automotive electronics in a big way."
Rural auto demand, especially two-wheelers, tractor and small commercial vehicles, could witness upsurge, says Ashish Kale, President, Federation Of Automobile Dealers Association. Reforms for agriculture, irrigation and rural development could drive rural demand in the next three-four months if all the measures are actioned immediately, he added.