Indian Automobile Industry welcomes 2014 Railway Budget

The Society of Indian Automobile Manufacturers (SIAM) has welcomed the Railway budget proposed by the country's Railway Minister Sadananda Gowda in the Parliament yesterday. The industry body is quite satisfied with the budget as various suggestions from the auto industry have been accepted in it, which were due from last 3-4 years.

Various measures announced in the Rail budget such as enhanced port connectivity and setting up of private freight terminals, will enhance auto industry's utilisation of railways for vehicle transportation and reduce cost of operations, industry body SIAM said.

"Enhanced port connectivity, automatic rebate for return load and setting up of private freight terminals and logistics parks under PPP mode were specific recommendations made by the auto industry which have been accepted by the Railway Minister," SIAM President Vikram Kirloskar said.

Naming the Rail budget as forward looking and progressive, he said these measures along with the facility of online bookings of vehicles will help the automobile industry in enhancing its utilisation of railways for transporting its products more efficiently, which will ultimately help in reducing the cost of operations. The Rail budget incorporates many of the recommendations SIAM had been making to the Railway Ministry for the last few years.

"Forward looking initiatives like introduction of Bullet Trains and FDI in Railways would also enable the country to modernise its rail transport system to match the best in the world," Kirloskar added.

We expect this positivity to continue and bring some sops for the automobile industry and for the consumer as well. The main expectations :

. Tax reliefs on the growing depreciation allowance on the passenger cars up to 33 percent throughout different segments.

. Reduction of gross borrowing for reducing the stress on availability of finance.

. Implementation of long-due GST (Goods and Service Tax).

. Re-framing of vehicle terminal policy for road safety and clean environment.

To know more about the budget and how it can effect you and your car buying decision, click here :