Make tax structure simpler for Indian auto industry to prosper

The Indian automotive industry, ranked the sixth largest in the world and still growing, contributes immensely to the economic growth. It contributes 7.1 percent of GDP and the sector has witnessed investments worth billions of dollars since 1990’s when domestic ownership control was removed.

The sector is poised for higher growth in view of the various initiatives such as the Make in India campaign, the ambitious automotive mission plan, and faster adoption and manufacturing of hybrid and electric vehicles in India or FAME, etc. Although the recent demonetisation has temporarily halted the growth enjoyed by the auto segment for long, the