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Auto industry demands fiscal concessions
Indian auto makers are demanding fiscal incentives, like the ones enjoyed by large infrastructure projects.
Fiscal incentives, like the ones enjoyed by large infrastructure projects, should be given to the auto sector, the draft automotive policy released by Society of Indian Automobile Manufacturers (SIAM) said on Thursday.
The draft also said that the sector should also be given concessions on land and power by the state governments like the ones that are given to the IT sector.
The policy envisages that the turnover of the auto industry would grow by 16 per cent every year till 2016 to touch $145 billion from $34 billion at present.
"With this kind of growth, the contribution of the auto sector to the GDP will increase to 12 per cent in the next 10 years from 5 per cent at present," Anand Mahindra member of development council for automobile and allied industries said at the annual general meeting of SIAM.
