Budget Line: Dr Raghupati Singhania on the budget

Dear Editor:

 

Here is a detailed budget reaction by Dr Raghupati Singhania, Chairman Automotive Tyre Manufacturers Association (ATMA) for Budget Line .

 

A photograph of Dr Singhania is attached for this purpose please.

 

Regards,

 

Pankaj

--

 

Pankaj Sukhija

+91 98101 23446

 

 

BUDGET REACTION - TYRE INDUSTRY

 

By Dr. Raghupati Singhania

Chairman

Automotive Tyre Manufacturers' Association (ATMA)

 

While the thrust on infrastructure and rural economy is welcome, Tyre Industry is somewhat disappointed that the long overdue correction in the anomaly of inverted duty structure, with customs duty on Natural Rubber (principal raw-material) being 20% and duty on tyres (finished product) @ 10% (or even lower under various trade agreements) has remained unresolved. 

 

Likewise, several other tariff inconsistencies in customs duty on raw-materials of tyre industry which are not manufactured domestically or in cases where domestic production is inadequate to meet demand from the tyre sector, have remained unaddressed.  Tyre Industry is optimistic that its concerns to arrest declining trend in tyre exports from India and accelerating growth momentum will be addressed by appropriate policy interventions.

 

Stepping up allocation for National Highways Development Programme (NHDP) by 23% will provide the much needed impetus for developmental pace of national highways.

 

On the whole, the expectations from the budget were very high and the Finance Minister has tried to do a balancing act.