Today is the boom day for India as the budget would be in session a few hours later from now. Usually everyone is tense about the budget but then the automobile companies are taxing their grey matter a bit more than the others. The reason for the same, as far as rumors suggest is that the government would be increasing the excise duties on small cars as also levying extra excise duties on diesel powered cars. This inference can be taken from the reports of the Kirit Parikh Committee.
Its been a year since the committee submitted its report to the Central government of India. The report stated that many of the multinational companies are investing big time in India for developing diesel powerplants. So an additional Rs 80,000 on all the diesel engined cars shouldn’t hurt the economy much. But then at the very disclosure of this report, the automobile companies have started crying foul and some even are going to the extent that they would think many times before investing in the Indian market again. It is a market trend that most of the cars sold in India are diesel cars and if there are extra taxes, then the demand would be curtailed. Already the automotive industry is reeling under the rising input costs of production. For more details about the ups and downs in the budget, we would have to wait till the final ruling is out. Watch this space for more information.