India’s single producer levy, prospects of falling financing costs, and higher farm income underpinned by monsoon rains should help carmakers accelerate the rate of growth in Asia’s third-biggest economy, said the head of the country’s biggest SUV manufacturer. Pawan Goenka, MD of Mahindra & Mahindra, said a healthy festive season towards the latter half of the year should help the industry expand faster than earlier forecast. With vehicle makers dropping prices by as much as 15 per cent in some of the states after the July 1 introduction of the Goods and Services Tax (GST), consumers are expected to advance their purchasing decision. For FY18, the Society of Indian Automobile Manufacturers (SIAM) had given an outlook of 8-10 per cent growth, an estimate many in the industry believe will have to be revised upward. Speaking on the impact of GST on the sector, Goenka said the implementation of tax reforms has been seamless and the entire value chain has aligned to the new tax structure quickly. “We have seen many disruptions in the last one and half years — right from the NGT (National Green Tribunal) ban to the Supreme Court banning diesel vehicles, the demonetisation and the GST. With most of the uncertainty out of the way, we look forward to a very good festive season. The growth rate will be higher than what we were expecting earlier,” said Goenka.