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The tyre industry has welcomed increased spend on infrastructure and road sector development in the budget. It said that the infra focus is a positive step forward and poised to revive the economy.
Raghupati Singhania, Chairman, Automotive Tyre Manufacturers Association (ATMA), said that a capex of ₹3,17,000 crore, in addition to an outlay of ₹14,000 crore in road sector and completing one lakh km of roads currently under construction and sanctioning another one lakh km will help boost the demand in tyre sector.
However, he said the industry was expecting correction in inverted duty structure in the tyre sector, which has been omitted. The import duty on rubber is one of the highest in India. Given the government’s emphasis on manufacturing, he said the industry is confident of correction in inverted duty structure.
Natural rubber is key raw material which is in short supply in India and imports are a must to meet the domestic demand. “We do hope, the government will consider our submission for correction in inverted duty by either reducing import duty on rubber or by increasing duty on tyres”, he said.
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