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| Reaction_10news |
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L Ganesh, vice chairman, Rane Group
01 January 1900 |
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Unlike the last issue, the current budget is lively one, opines Mr. L. Ganesh, vice chairman, Rane Group. According to him, the budget gives the long term vision of the government when it relates to import duties.
However he wondered how the government would be amending the Industrial Disputes Act and other labour laws as announced by the finance minister during his budget speech. "We should be pro employment and not pro employee," he adds. He also commended the welfare measures announced by Mr. Yashwant Sinha relating to contract labourers.
Welcoming the stiff 105 per cent import duty on import of second hand cars he says with huge passenger car capacity created in India and the industry suffering from lack of demand, high import tariff is a just move. "Except two wheeler sector all other players in the automobile industry are suffering now. Similarly the reduction in excise duties on passenger cars and two wheelers will be the demand driver," Mr. Ganesh opines.
On the whole, according to him, the budget is good for the automobile and auto components industry as the government is focussing on infrastructure sector that would spur demand for vehicles.
V A Raghu, managing director, Tube Investments of India Ltd
"The manufacturing industry will go down in the next couple of years unless some incentives are provided," warns Mr. V. A. Raghu, managing director, Tube Investments of India. According to him the budget has not encouraged the environment protection industry with suitable tax breaks.
According to him Tube Investments will be benefited if the demand for auto industry picks up as 30 per cent of the company's supply is made to auto sector. Speaking about the bicycle industry he says that the demand is dependent on the health of rural economy and as there is nothing in this budget that would increase the rural income, bicycle manufacturers will have tough time. "Bicycle import from China is a small threat as the importers cannot build a national brand.
Imported cycles will be available only in certain pockets," Mr. Raghu opines.
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