Budget 2015 boosts auto industry, will create jobs: Experts
- by Team Zigwheels
- Mar 2, 2015
- | Views: 10390
Auto industry experts have welcomed the Union Budget 2015-16, saying the announcements will help the sector and lead to more jobs.
Rajeev Singh, head of automotive sector, KPMG India, said the increasing disposable income in rural areas will improve penetration of passenger vehicles and two-wheelers:
"Credit of Rs 8.5 lakh to farmers will indirectly boost the agricultural equipment and tractors segment. The government is aligning to ensure at least one family member will have an economic route to support the family. This will improve the sentiments of entry-level two-wheelers.
Investment in infrastructure to go up by Rs 70,000 crore, revitalization of PPP model and development of 1 lakh km of new roads will have an impact on commercial vehicles segment, which had negative growth last year.
The proposed allocation of Rs 75 crore towards electric mobility vehicles to move to the next level of clean technology would boost consumer confidence. However, lack of EV infrastructure in India would make it difficult for the segment to move at a fast pace."