ACMA Proposes Budget Measures to Boost Auto Components Sector

ENA Sectors 2024-06-25 16:27:56 New Delhi, Jun 25 (KNN) In a strategic move ahead of the upcoming Budget 2024-25, the Automotive Component Manufacturers Association of India (ACMA) has put forth a series of recommendations aimed at invigorating the auto components industry. The proposals, submitted to both the Ministry of Finance and the Ministry of Heavy Industries, underscore the sector's push for growth-oriented policies and continued reform. Key among ACMA's suggestions is the reintroduction of additional investment allowance to incentivise capital expenditure. This measure, if implemented, could significantly boost the industry's modernisation efforts and enhance its global competitiveness. Additionally, the body has called for an increase in depreciation rates on plant and machinery from the current 15 per cent to 25 per cent, a move that could accelerate industrial upgrades and technological adoption. In light of the growing electric vehicle (EV) market, ACMA has emphasised the need for rationalisation of GST rates on EVs and their components. This recommendation aligns with the government's push towards sustainable transportation and could potentially make electric vehicles more accessible to consumers. ACMA President Shradha Suri Marwah, who also serves as CMD of Subros Ltd, expressed optimism about the upcoming budget. We are looking forward to a growth-oriented budget with continued thrust on reforms and infrastructure development, she stated. Marwah also highlighted the positive impact of schemes like the Production Linked Incentive (PLI) on the automotive industry, expressing hope for their continuation. The industry body has also sought clarity on tax deductions related to business benefits and perquisites under Section 194R of the Income Tax Act. Furthermore, ACMA has proposed an amnesty scheme to resolve long-standing disputes under customs laws, a move that could potentially ease regulatory burdens on the sector. These recommendations come at a crucial time for the auto components industry, which has been navigating challenges ranging from global supply chain disruptions to the rapid shift towards electrification. The proposed measures, if implemented, could provide the necessary impetus for the sector's growth and adaptation to emerging market trends. As the government finalises the Budget 2024-25, all eyes will be on how these industry-specific recommendations are addressed, potentially shaping the future trajectory of India's automotive component sector. (KNN Bureau) 38340 https://knnindia.co.in/news/newsdetails/sectors/acma-proposes-budget-measures-to-boost-auto-components-sector 2024-06-25 16:27:56 knnindia.co.in ACMA Proposes Budget Measures to Boost Auto Components Sector