Extension of 2 % reduction in excise duty up to Dec 31- No major boost to the capital goods sector
The six-month extension in excise duty concession announced by the Finance minister Arun Jaitley on Wednesday came as a small relief for the capital goods and consumer durables industries; however the economy of the country needs a drastic uplift for the sector to breathe easy. The buying power has reduced which had an adverse effect on the capital goods and consumer durables industries in the last few years.
MV Kotwal the director for heavy industries at L&T mentioned that the company has not felt that they were benefitted after the excise reduction in February was introduced. It was followed by the general election and there was no policy stability and the market sentiment did not change drastically.
Kotwal also mentioned that the extension of 2 % reduction in excise duty up to December 31 from the existing June 30th deadline will not provide any serious benefit to the capital goods sector until the entire economic scenario changes. Overall economic growth, inflation and expediting the infrastructure projects can only blow a new lease of life to the ailing industry.
Kotwal also mentioned that the duty cut could have an impact unless the government came out with some measures in the budget to drive the sector.
Source- Financial Chronicle
2 % reduction in excise duty, capital goods sector, excise duty, finance minister Arun Jaitley, Infrastructure projects, L&T, MV Kotwal the director for heavy industries at L&T
