#Hassan. Posted January 31, 2021 Posted January 31, 2021 With less than 24 hours to go before Finance Minister Nirmala Sitharaman presents the Budget 2021 in Parliament on February 1, 2021; there are expectations, anxiety, and speculations running rife. The auto industry being one of the most impacted due to the pandemic and related economic crisis expects steps in the budget that would act as breathers for the entire industry ecosystem. (Click here to read all Budget 2021 articles.) The $118 billion Indian automobile industry is expected to reach $300 billion by 2026. Presently, the country’s automobile sector is one of the largest in the world and accounts for more than 7.1% of India's gross domestic product (GDP). Also, the auto industry contributes to nearly 22% of India’s manufacturing GDP. Besides churning a huge amount of revenue for the government, the auto industry is a key source of bringing foreign investment, generating employment. The auto retail sector alone employs around 4.5 million jobs, as stated by Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati. According to data by KPMG and NSDC, by 2022, nearly 15 million people are expected to be employed directly in the Indian automobile industry. (Also Read: Budget 2021: New taxes may be counterproductive, say auto industry leaders) So far, the auto industry being a key part of the country’s manufacturing sector and having a larger job creation role, and having been impacted badly due to the crisis, expects measures by the government that will alleviate the situation. Various stakeholders of the auto industry have different expectations from the budget.
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