Automotive Component Manufacturers Association (ACMA), the apex body representing India’s auto component sector, hailed the measures announced by the Government today. The association stated that this would give a big boost to the MSME sector, which has been under severe stress due to the lockdown.
According to the release issued by the association stated that the first tranche of Economic Revival Package is timely and pragmatic.
Deepak Jain, President, ACMA, said, “The announcement made by Hon’ble Finance Minister in context of ‘Atmanirbhar Bharat’ as envisioned by our Hon’ble Prime Minister, is indeed heartening and reassuring. Change in definition of MSMEs has been a long-standing recommendation of ACMA. With this new classification, a significant number of ACMA members stand to benefit as the sector is dominated by smaller enterprises. That apart, infusion of liquidity through the Collateral Free Automatic loans and the Subordinate debt scheme, will ease the severe challenge of Working Capital being faced by the sector.”
“We are also hopeful that the Government will soon announce a package for demand generation for the automotive sector. A uniform GST rate of 18 per cent on all vehicles and auto components, backed by an incentive-based scrappage policy would bring the automotive industry back on track. That apart, we look forward to support from the government for payment of salaries of workmen and contractual labour during the lockdown period,” added Jain.