In a positive response to this year's budget announced on February 1, Vikram Chopra CEO, Cars24 had to say that the move towards increasing budget allocation for infrastructure would ensure better rural and urban roads.
"This budget has been focused on the government agenda of promoting infrastructure, rural and agriculture development, steady reforms and a policy guidance for the economy.
"We welcome the move to increase infrastructure allocation to Rs 3.96 lakh crores. Better rural and urban roads will boost sales of cars and increase efficiency in mobility, thereby increasing the auto sector’s contribution to GDP.
"We also welcome the announcement on fund allocation for Bharat Net project and strengthening the OFC infrastructure. It will be a booster shot for high-speed broadband connectivity, thereby promoting digitization in rural areas. Several initiatives taken by the government with respect to digital transactions is a step in the positive direction.Also read: Budget 2017: 5 Changes CARS24 Wants in the Used Car Industry
"Incentivising digital payments will also increase liquidity in the rural sector, thereby pushing demand. Safe, secure and easy transactions will also build trust between buyers and sellers thereby reducing friction in the market. Furthermore, limiting cash transactions to Rs 3 lakhs will give a further push towards digital mode of payment. Stimulating digital payments is a critical step in bringing more of the informal economy into the fold of the formal economy.
"However, we were expecting a significant reduction in income tax for individuals to boost consumer sentiment and increase their disposable income. This would have addressed the issue of dampened demand and lukewarm sentiment.
"While CARS24 appreciates the thrust from the government on GST we were hoping for more clarity on GST rollout timelines. The need to be GST-compliant would facilitate higher business transparency and create a level-playing field for all market competitors."
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