The automobile manufacturers in India are currently lobbying the Commerce Ministry for an extension on the excise duty cut which was introduced during the interim Budget presented in February. The validity of the excise cut will lapse on June 20 but there has been no word from manufacturers if they will increase prices.
Members of the SIAM met Commerce Minister Nirmala Sitharman on Monday in this regard and this was revealed through a tweet posted by her after the meeting.
A report from the Hindu Businessline suggests that during the meeting falling sales was also a major topic of discussion and that there is was an urgent need to provide incentives to increase manufacturing and consequently increase employment in the sector. It suggests while the government may retain the lowered excise slab it may find it hard to lower the excise duty further with the current excise duty constraints.
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