Auto scrappage policy a success globally, but govt must avoid the pitfalls

A well-implemented policy will not just help boost demand for motor vehicles, but will also help create jobs and alleviate the consumption and demand slowdown across demographics

If the success of any policy is measured by how much it resonates with various governments around the world, then the automobile scrappage policy has been quite successful. In the aftermath of the 2008 global financial crisis, more than 18 nations had implemented scrappage policy as a way to combat economic slowdown.

Now as the Narendra Modi government squares up the reality of India’s April-June quarter gross domestic product growth coming in at 5 per cent, the lowest in six years, it has realised the potential of a well-implemented scrappage policy, not just in boosting demand for motor vehicles, but