Auto industry welcomes budget and express their views

As the interim budget shows that there is no specific scope for auto sector but after that auto industry welcomes the budget and express their views that the increased allocation for defence and surface transport ministry would boost vehicle sales.

And on this issue the Society of Indian Automobile Manufacturers (SIAM) said that the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and the ministry of surface transport could be used for funding the vehicle replacement programme.

External Affairs Minister Pranab Mukherjee, who presented the interim budget, allocated Rs.118.4 billion (Rs.11,842 crore) for the JNNURM for 2009-10.for the recorded negative growth for seven consecutive months between July 2008 and January 2009. and also Mukherjee provided Rs.1.41 trillion (Rs.141,703 crore) for defence spending for the fiscal out of which Rs.548 billion was allocated for capital expenditure.

And on this issue the lobby again said that We hope the government would shortly come up with further fiscal and monetary measures to revive the growth including extension of earlier announced measures, thus addressing such sectoral measures that could not be a part of the interim budget,

And Auto analyst Murad Ali Baig said that this promise is too small (which External Affairs Minister Pranab Mukherjee done)and he said that It's not necessary that increased defence spending will convert into sales of buses and trucks, neither can the JNNURM funding be directly attributed to sales in the coming days,