The much awaited union budget presented by our finance minister Ms. Nirmala Sitharaman shows a positive path for our country’s economy.
In order to augment India’s infrastructure and create jobs in the country the announcement of the launch of Rs 103 lakh crore infrastructure projects is a good move by the Government of India. The government’s aim to accelerate the development of the highways along with 2,500km access controlled highways and 9,000 km of economic corridor and in addition to create 2,000 km each of strategic highway and port connectivity projects are great policy initiatives, thus creating a big boost for the infrastructure segment. Policy initiatives like these would eventually result in employment generation followed by an increased demand for commercial vehicles and the construction equipment industry. In addition, the announcement of highway projects worth 6,000km being monetized before 2021 is a welcome move. The abolishment of the Dividend Distribution Tax (DDT) is a positive step towards helping India become a more attractive investment destination. The announcement of the scheme to boost mobile, electronic manufacturing and semi-conductors packaging will further support the manufacturing of electric vehicles in the country. This would indirectly propel the growth of the Indian automotive industry. Also, boost to rural infrastructure and agriculture (PPP in agriculture and transportation) will increase the demand for cars, tractors and utility vehicles in coming days.
Over all this is a promising budget and we at ZF look forward for the coming financial year.
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