The Indian tyre industry is hoping that the Union Government will consider its submission for correction in inverted duty by either reducing import duty on natural rubber or by increasing duty on tyres, according to Dr. Raghupati Singhania, CMD, JK Tyre & Industries Limited.
Stating that the tyre industry was expecting correction in inverted duty structure in tyre sector, which has been omitted, Singhania said the import duty on rubber was one of the highest in the country. “Given the Government’s emphasis on manufacturing, we were confident of correnction in inverted duty structure. Tyre is raw material intensive. Natural rubber is key raw material which is in short supply in India and imports are a must to meet the domestic demand. Therefore, we do hope, the Government will consider our submission for correction in invverted duty by either reducing import duty on NR or by increasing duty on tyres”, he said.
The Finance Minister, Arun Jaitley had huge expectations to meet in this Make in India budget. It looks quite balanced and progressive in approach. “The budget promises to put a well thought of blueprint for development in the coming years. It encompasses inclusive growth model, as promised by the Government, which is a welcome step. With this budget, we can expect gradual rise in GDP, especially by controlling physical deficit and CAD. I am glad that the Budget outlines Govt’s keen focus on developing infrastructure that would encourage more foreign investment apart from laying foundation for a long term growth”, Singhania pointed out.
The announcement of GST coming into effect by next year is indeed a positive step, he said. While 8% growth still looks a distant goal, the Finance Minister has sent a clear message towards his government’s intent. “It is encouraging that Corporate Tax is proposed to be reduced to 25% over the next four years, which will encourage growth and investments. Infra focus is a positive step forward and poised to revive the economy. A Capex of Rs. 3,17,000 crore, in addition to an outlay of Rs 14,000 crore in road sector and completing one lakh km of roads currently under construction and sanctioning another one lakh Kms will help boost the demand in Tyre sector”, Singhania said.
“Another positive outcome has been the Government’s focus towards the education, skills by way of introducing sops for students as well as establishing new hubs of higher education in new locations, which are pivotal for India’s overall progress. The Government is well on track as in the budget ample focus has been given on the development of rural India”, Singhania added.