The Budget 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 Ganga navigable,” said Vinod K Dasari, managing director of Ashok Leyland.
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 Budget could have been more aggressive on FDI in sectors such as defence and insurance.
On JNNURM, which didn’t see any reference in the Budget speech, Dasari said, “no news is not necessarily bad news. We remain hopeful and would await further details on this”.
Speaking about FDI in the defence sector that was increased to 49 per cent, he said, “increase in FDI in any sector is a welcome sign. We will have to study the contours of this to offer an informed opinion”.
Ashok Leyland Defence Systems (ALDS), a joint venture company, provides tactical and armoured solutions to address the defence sector requirements in India and globally.