At a time when the RBI’s different measures are making lending tough, worsening the situation of one of the most rate sensitive auto sector, Heavy Industries Ministry has said that it will soon take up the issue with the Prime Minister and seek stimulus package to revive the sector.
Heavy Industries and Public Enterprises Minister Praful Patel, stressing the need to take immediate steps for arresting the decline in auto sales has said that “I would say that we will look at all the ways and means and talk to the Prime Minister and also the Finance Minister (in this regard)... There is no reason why we cannot see that auto industry gets a stimulus”. Patel further stated that manufacturing activities should be increased in the country,but high interest rates impact the financing of big projects and manufacturing competitiveness.
Earlier, the Automobile sector industry body, Society of Indian Automobile Manufacturers (SIAM) too had sought a stimulus package for the automobile sector from the government after car sales fell for record eight months in a row in June, declining 9 percent. Sales of vehicles across all categories dropped 5.1 percent to 14,07,767 units in June from 14,83,443 units a year earlier. This has forced domestic car manufacturers to cut down production numbers and lay off non-critical employees.
Heavy Industries and Public Enterprises Minister Praful Patel, stressing the need to take immediate steps for arresting the decline in auto sales has said that “I would say that we will look at all the ways and means and talk to the Prime Minister and also the Finance Minister (in this regard)... There is no reason why we cannot see that auto industry gets a stimulus”. Patel further stated that manufacturing activities should be increased in the country,but high interest rates impact the financing of big projects and manufacturing competitiveness.
Earlier, the Automobile sector industry body, Society of Indian Automobile Manufacturers (SIAM) too had sought a stimulus package for the automobile sector from the government after car sales fell for record eight months in a row in June, declining 9 percent. Sales of vehicles across all categories dropped 5.1 percent to 14,07,767 units in June from 14,83,443 units a year earlier. This has forced domestic car manufacturers to cut down production numbers and lay off non-critical employees.
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