Union Finance Minister P Chidambaram has presented his Interim (Vote on Account) budget for 2014, in which he has substantially reduced the excise duty for the auto industry.
Auto manufacturers have been enthusiased with this move by the FM. The industry was in a bad shape and this would definitely boost the much necessary reforms required to revive back the industry to shape.
The FM has cut excise duty from 12% to 8% on small cars, and 20 % on large and mid segment cars. For the SUV segment, the excise duty has been cut by 6%.
Markets remained unmoved by the presentations in the budget. Both the Sensex and the Nifty did not make any swift moves in any direction.
The Nifty is at 6066, up by 18 points while the Sensex is up by 76 points at 20444.
Analysts have felt that though the Finance minister has not introduced any compellingly market friendly measures, he has though not taken the market by negative surprises, which is a big relief. The markets are in the mood of buoyancy as the nation is heading for the general elections during the coming months.
The Finance minister in his budget speech, held a detailed enumeration of the achievements of the UPA government in the ten years, clearly an effort to campaign the government’s measures to face the Elections 2014.