“The Union Budget 2024’s sharp focus on infrastructure, manufacturing, and skilling as pillars for economic growth is overall a positive indicator for India’s tyre industry as the fortunes of the tyre sector are linked to the country’s economic and infrastructure growth,” said Arnab Banerjee, Chairman Automotive Tyre Manufacturers Association (ATMA)
The capex target for FY 2024-25 has been maintained at over ₹11 lakh crore and shows the Government’s unwavering and continued commitment to infrastructure development for sustaining economic growth. The announcement of 12 new industrial parks under the National Industrial Corridors with a focus on creating integrated zones, is expected to significantly boost the logistics and transport, in turn, giving a fillip to CV tyres, he said.
A budget allocation of ₹2.66 lakh crore designated for rural development, including rural infrastructure projects will impart a push to the rural economy and higher demand for two-wheelers and entry-level cars with spin-off demand for tyre industry too. The tyre industry is poised to play a larger role in India’s economic growth as the “wheels of the nation”.
The industry was looking forward to a reduction in customs duty on natural rubber, the highest in the world. Unfortunately, this has not been addressed in the Union Budget. However, the Finance Minister’s proposal of a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade and removal of duty inversion provides major solace to the industry, he added.