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Auto component units pleased

Staff Correspondent

MUMBAI: The Finance Minister's recognition of the automotive industry as a priority sector that can provide huge employment if the right incentives are made available to it, has pleased the industry. The minister, however, stopped short of making any announcement in the budget to promote it.

According to Baba Kalyani, Chairman and Managing Director, Bharat Forge, "manufacturing clearly is identified as a key driver of the national economy and I am particularly happy that the automobile and auto components sectors have received greater attention. Specifically, the reduction in excise duty on small cars is welcome and will greatly boost demand for automotive components."

However, Mr. Kalyani felt that the reduction should have been applied to a larger section of the automotive industry. ``The 180 SSI items to be de-reserved will hopefully include some automotive components."

"The reduction in customs duty on key metallic raw materials and inputs for the auto component industry to a maximum of 7.5 per cent will reduce the input costs for industry and encourage domestic value addition and manufacturing,'' according to Ashok Taneja, President, Automotive Component Manufacturers Association of India (ACMA).

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