The recently announced Rs. 20 lakh crore-lifeline may have come as a booster shot for many ailing sectors which have borne the brunt of Covid-induce lockdown. However, there are a handful of industries which have been sidelined like the beleaguered Indian automotive Industry, which supports employment of more than 3.7 crore people and contributes to 15% of GST amounting to Rs 1,50,000 crore every year. While the industry has already expressed its disappointment, Bosch India reiterated the same concerns while interacting with reporters in an e-conference recently. The Indian arm of the German multinational engineering and technology company maintained that the industry is unlikely to revive in the medium term unless there are some tax cuts along with some incentives under the vehicle scrappage policy.
Soumitra Bhattacharya, Managing Director of Bosch Limited maintained, “On one hand, the entire country has been very positive and euphoric about the announcement of this package. While the package has addressed many sectors of the society including migrant labour, MSMEs, Agriculture. etc. These are very strong points of this package, it has not impacted with direct stimulus for the auto industry.”
Talking about the expectations from the government on behalf of Bosch India’s industry association, he maintained, “There was a request from the auto industry, whether we could look into the possibility of GST reduction for x no of months ( on automobiles) from 28 to 18 (%) There was also a long request to the government of India on the introduction of scrappage policy. And on behalf of the auto industry, I would look forward that the government of India would be able to give a direct stimulus package in to the auto industry in the near term.”
Commenting on the impact of lockdown, Bhattacharya said the month of April was a total wipe out for the entire industry in India. When asked how the company sees recovery from the current situation, Bhattacharya said it would…