The Automotive Component Manufacturers Association of India (ACMA) is stepping into the arena of policy influence with a bold submission for the upcoming Union Budget. This move, laden with strategic proposals, aims to ignite a transformative wave within the automotive sector, spurring growth, innovation, and sustainability.
At the heart of ACMA’s recommendations lies a call for incentivizing capital expenditure, breathing life into the industry’s veins by reintroducing additional investment allowance provisions. This visionary step not only fuels expansion but also ignites a spark of competitiveness that propels Indian automotive components onto the global stage.
But that’s not all. ACMA is championing a crucial shift in depreciation rates, pushing for an elevation from the current 15% to a more conducive 25%. This move isn’t just about numbers; it’s about empowering manufacturers to invest boldly in cutting-edge plant and machinery, fueling a cycle of technological evolution and efficiency.
In the realm of electric vehicles (EVs), ACMA’s voice resonates with a plea for rationalizing GST rates. The call to reduce GST on EV batteries from a lofty 18% to a more palatable 5% isn’t just about economics; it’s a clarion call for accessibility and sustainability. Lower costs mean more accessible EVs, paving the way for a greener, more efficient tomorrow.
Now, you might wonder, can such seismic shifts really happen? The answer lies in the realm of possibility and vision. While GST rate adjustments fall under the GST Council’s domain, the impending budget carries the potential for transformative change. Imagine a landscape where research and development in the EV sector flourish, powered by strategic tax adjustments that drive innovation and affordability.
Tax deductions, a labyrinth that businesses navigate, are also under ACMA’s discerning gaze. Clarity on deductions under Section 194R and an amnesty scheme for resolving legacy disputes under Customs laws are not just administrative tweaks; they’re pathways to a more transparent, efficient business environment.
In the words of Shradha Suri Marwah, President of ACMA and the driving force behind Subros, a growth-oriented budget isn’t just a wish; it’s a necessity. Initiatives like the PLI have been lifelines for the automotive industry, and the hope is for this momentum to surge forward, carrying with it the promise of progress, prosperity, and a future where innovation knows no bounds.
As ACMA’s recommendations echo through the corridors of policy, they carry with them the aspirations, dreams, and resilience of an industry poised for greatness. The Union Budget of 2024-25 stands at the crossroads of possibility, where strategic decisions can sow the seeds of a vibrant, dynamic automotive landscape, embracing innovation, sustainability, and global leadership.