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Budget positive for auto sector: Ashok Leyland

Says increase in FDI in any sector is a welcome sign

T E Narasimhan  |  Chennai 

The is positive for the automotive sector as the announced measures would deal with stimulating the demand.

“While there is no direct stimulus to the auto sector, we are enthused by the wide-ranging announcements made on infrastructure, particularly in transportation and distribution, with massive allocations for roads, warehouses, water, gas distribution and for making River navigable,” said Vinod K Dasari, managing director of

According to him, substantial allocations announced for the construction of smart cities, industrial zones, airports, ports and power plants would generate higher demand for commercial vehicles.

Finance Minister Arun Jaitley has also promised to resolve the impasse in the mining sector, a promise that will be keenly watched, as it has the potential to dramatically impact large parts of the economy, he said and added the could have been more aggressive on in sectors such as defence and insurance.

On JNNURM, which didn’t see any reference in the speech, Dasari said, “no news is not necessarily bad news. We remain hopeful and would await further details on this”.

Speaking about in the defence sector that was increased to 49 per cent, he said, “increase in in any sector is a welcome sign. We will have to study the contours of this to offer an informed opinion”.

Defence Systems (ALDS), a joint venture company, provides tactical and armoured solutions to address the defence sector requirements in India and globally.

First Published: Sun, July 13 2014. 20:33 IST