The Central Government is likely to take some policy decisions and introduce some major road infrastructure projects to book the sales downturn being faced by the automobile sector, said Union Minister Nitin Gadkari.
Nitin Gadkari is the Minister of Road Transport and Highways and Micro, Small and Medium Enterprises were speaking on Thursday at the annual convention of the Society of Indian Automobile Manufacturers (SIAM).
He continued that in order to address the rising issues concerning the automobile industry, the ruling government is likely to introduce road projects amount Rs. 5 lakh crore in the coming months. Mr. Gadkari said that these new construction projects would generate a rising demand for automobile construction equipment, for example- trucks.
The automobile sector’s body has sought steps to assist them from the Central Government, including a reduction in GST Rates.
At present, the automobile sector is suffering from a sales downturn because of several key factors like high GST rates, stagnant wages, farm distress, and liquidity constraints.
Besides the auto industry, stock management and inventory pile-up of unsold BS-IV vehicles have also been added to the problems in the sector.