The Hindu Business Line : Reduce excise duty on auto products

Global financial crisis has affected number of automobile industries of advance countries. Many automobile giants such as General Motors are suffering due to financial crisis.

India is a growing economy (per capita income and gross national income with simultaneous growth of demand for many goods including passenger cars). The present slowdown may affect the automobile industry. Most of the automobile industries are in the infant stage. To protect the automobile industry from recession and accelerate the growth, the Finance Minister should reduce the excise duty to a reasonable extent at least for the medium size cars in the 2009-10 Budget.

Reduction in excise duty will definitely reduce the price of the vehicles and industry will continue to produce the same quantity.

Infrastructure development: Global financial crisis is mainly responsible for negative growth in many advanced countries.

In India, we expect 6-7 per cent growth in the financial year. To accelerate the growth and employment, the Government has to spend a large amount through public work programmes. India is in need of good infrastructure viz., road, transport, two wheeler lane and communication etc. Road development - National highways and State highways and the rural road should be the first priority for all round economic progress.

Public spending / public-private participation for infrastructure development will automatically increase the demand for basic goods and overall employment in the country.

Good infrastructure of international standards will attract more foreign investors to our country and pave the way for further development in the years to come.

G. Nagapillai, Managing Director, Pillai & Sons Motor Company

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