The annual budget is always considered to be one of the most debated topics in the market. The reactions that pour out sometimes turn out to be positive or negative depending on the impact on the concerned industry. The automotive industry on the other hand is no different with welcoming moves made by the concerned authority.
However the recent yearly budget announced for the year 2019 has caught the attention of Mr Venu Srinivasan, Chairman, TVS motor company who quoted saying “This budget has empowered and increased buying capacity of every sector and segment of people. Tax exemption up to Rs. 5 Lakh per annum income for individual tax payers is a historical step, which will provide more disposable income at hand for the working class. The decision will have an impact and there we expect more buyers of two-wheeler vehicles and in turn help the industry’s growth.
The construction of rural roads having an allocation of Rs 19000 crores under the Pradhan Mantri Gram Sadak Yojana will be another boost towards demand for rural economy. Two-wheeler industry in rural sector will also be positively impacted as Rs 6,000 per year cash support to about 12 crore small and marginal farmers will be provided under Pradhan Mantri Kisan Samman Nidhi scheme, which will cost the exchequer Rs 75,000 crore annually .”