Union Budget 2014-15 – Industry Reaction from AMW Motors Ltd.

Mr. Anirudh Bhuwalka, MD and CEO, AMW Motors Ltd.

“This is a very pragmatic budget with the Finance Minister addressing several issues to invigorate growth related to housing, infrastructure, manufacturing and the finance sector. The increase in FDI limits on insurance and defence, while expected, is a welcome step. The FM’s commitment to 4.5% fiscal deficit shows prudence.  While the budget is not “big bang” given the fact that he has had only six weeks, he has built in continuity as well as a new direction to spur growth. The execution will be critical, especially in the large number of areas where PPP is involved, but overall the budget has given optimism that we are on track. ”

Mr. A. Ramasubramanian – President, AMW Motors Ltd.:

“The measures for development of infrastructure development like highways, industrial corridors, housing, manufacturing , FDI in Defence sector and power projects are welcome and will contribute to demand generation for commercial vehicles, which have seen record lows in recent years. The Finance Minister’s announcement for tax holidays for infra projects with long gestation periods will encourage more entrants into the sector. The budget has attempted to address issues in several sectors of the economy, but industry will pin its hope on implementation, which has been an issue in the past.””

Mr. R. N. Rao, Director – Sales & Marketing, AMW Motors Ltd.:

“The speeding up of highway projects and development of 8000 kms of roads will give a boost to M & HCVs as also the measures announced in the power and housing sectors. Excise concessions for the automobile industry are being continued and recent trends in the commercial vehicle sector give us cause for cautious optimism. The recovery of the industry is closely linked to so many infrastructure and consumer sectors that it will be some time before an uptick in demand is continuous and healthy. However, the budget has sent positive signals for our sector.”