A sharper focus on infrastructure, including road infrastructure, through higher budgetary allocations and setting up infrastructure financing institution augur well for several sectors of the economy including those which have been affected by the pandemic-induced disruption, states Automotive Tyre Manufacturers’ Association (ATMA).
“Government’s reconsideration of Custom Duty Policy aimed at promoting domestic manufacturing is a highly welcome move. Inverted duty structure in the tyre industry has created an uneven playing field and we look forward to the new customs duty structure which will be put in place by Oct 2021”, said Mr K M Mammen, Chairman ATMA.
Allocation of Rs 18K crore to support augmentation of public bus transport services will have a multiplier effect giving a fillip to the tyre sector as well.
Creation of a dedicated Development Finance Institution (DFI) is a very significant move as long gestation infra funding needs long term commitment. In this context, the launch of National Asset Monetisation Pipeline will augment the revenues of the government to fund new infra projects. As for wheels of the nation, the Tyre industry is all set with increased capacities to aid in the infra development, added Mr Mammen.