The Indian tyre industry stands to gain from the government's steps to enhance spending on infrastructure announced in the Union Budget 2026-27, Automotive Tyre Manufacturers Association (ATMA) said on Monday. The tyre sector is closely linked to the performance of the transport and infrastructure ecosystem and the substantial increase in public capital expenditure to Rs 12.2 lakh crore is a significant positive for long-term demand growth, ATMA said in a statement. The higher capex allocation underscores the government's ongoing push to build future-ready infrastructure across the country, particularly roads, rail connectivity, urban mobility networks and logistics corridors , which are critical drivers of tyre demand across all vehicle segments, it added. "The tyre industry's growth is intrinsically linked to the pace of infrastructure expansion in the country. The government's focus on elevating public capex reinforces demand momentum for tyres across both passenger and commercia
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