he Indian government headed by Prime Minister Narendra Modi recently presented the Union Budget for 2014–15.
There was not much in it for the automobile industry directly, except for the continuation of the excise duty announced in the interim budget till December 2014 and the green signal to the long-due Goods and Services Tax (GST).
The approval of a Rs 37,880-crore-fund for the expansion of road networks, including state and national highways will benefit the automotive manufacturing industry in the long term. Here's a look at four main announcements in the 2014 budget that will impact the automobile industry.
<b>Expansion and improvement of road network in India</b>
In India, roadways are the most important mode of transportation and need further development.
To build better roads and highways, an investment of Rs 37,880 crores has been passed by the government in this budget which includes Rs 3000 crores for the North Eastern region, under which the government has decided to construct a national highway of around 8500 kms by the end of this fiscal year.
This will enable automotive traders to reach even those areas where there is no proper road transportation and infrastructure.Text
: Charu Kishnani, Car Dekho www.CarDekho.com, India's #1 auto portal!
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