The domestic forging industry on Tuesday said the Union Budget 2022-23 does not offer much for the automotive sector but its focus on investing more in infrastructure and renewable energy will indirectly support employment generation.
The domestic forging industry on Tuesday said the Union Budget 2022-23 does not offer much for the automotive sector but its focus on investing more in infrastructure and renewable energy will indirectly support employment generation.
The domestic forging industry on Tuesday said the Union Budget 2022-23 does not offer much for the automotive sector but its focus on investing more in infrastructure and renewable energy will indirectly support employment generation.
"Apart from encouraging EVs (electric vehicles) by creating a battery-swapping strategy to overcome EV charging infrastructure, I believe there isn't much in the Budget to support the auto sector as was expected," Vikas Bajaj, president of the Association of Indian Forging Industry (AIFI), said.
Also, not much has changed in the direct tax rates for corporates as well as individuals, except incentives for start-ups by extension of timeline for the start of production under Section 115BAB of the Income Tax Act, he said.
He added that "this Budget focuses on investing more on infrastructure and renewable energy, which will indirectly support employment generation".
The domestic forging industry, which is second-largest in the world, comprises 85 per cent of the MSME sector and primarily caters to the automotive industry, which accounts for 60-70 per cent of the forging production.
It employs over three lakh people directly and an equal number of people indirectly.
In addition, he said the government has focused on strengthening the logistics sector, digital education and health infrastructure, which is a welcome move.
Some industries, such as jewellery, have benefited from reduced customs duties on precious stones and other commodities, according to him.
Finally, to assist the MSME sector, the Emergency Credit Line Guarantee Scheme (ECLGS) scheme has been extended for medium and small enterprises till March 31, 2023, in the Budget, he said.