Finance minister Nirmala Sitharaman on Tuesday said that the government will respond to the demands of the automobile sector. She, however, remained non-committal about the Goods and Services Tax (GST) rate cut on cars from 28% to 18%. Automobile sales witnessed its worst-ever fall in over two decades with overall domestic car sales dipping to around 24% in August.
"Industry had spoken to me and one of their demands was to also consider the reduction in GST rates about which I singularly can't say anything. It is something, if taken to Council, they will have to take a call. But we have considered other suggestions which have come from that sector... We are working on a few things. Let me see what comes out. We are conscious that we have to respond," Sitharaman said while addressing a press conference in Chennai on 100 days of bold initiatives and decisive actions taken by the government.
Even as the government is working on solutions to address their concerns, the automobile sector has been impacted by several factors like Bharat Stage-6 emission norms and mindsets, the FM said. "Some studies do tell us about the mindsets of the millennials who are now preferring not to commit an EMI (Equated Monthly Instalments) towards buying an automobile instead would prefer to have an Ola and Uber or take a metro," Sitharaman said.
As far as homebuyers are concerned, Sitharaman said that the government is working on some measures for them. "Obviously it has to be something where the concerns of the other ministries will also have to come into play. All of us will have to sit and work together. We are working and, yes, we will be coming up with something sooner rather than later," she said.
To revive the economy, the government has already come up with two major announcements and will be coming out with one or two more soon, the minister said.
On the gross domestic product (GDP) growth sliding to 5% in the April-June quarter of the current fiscal, the finance minister said that such dips in the growth do happen and that the attempt is to increase it in the next quarter.
"One, there should be a consumption increase through government spending. The best spending will be on infrastructure," she said.
"We have announced Rs 100 lakh crore. That is the amount which will have to be speeded up for infra related projects. I have appointed a task force that will speedily identify the projects through which this money can be front-loaded and not wait some other time."
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As far as homebuyers are concerned, Sitharaman said that the government is working on some measures for them. "Obviously it has to be something where the concerns of the other ministries will also have to come into play. All of us will have to sit and work together. We are working and, yes, we will be coming up with something sooner rather than later," she said.
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