Auto scrap policy quote : Parthasarathi Patnaik – Chief Risk Officer, Vayana Network
“While the vehicle scrappage policy seems voluntary at this stage, I think this may be the first of many bold steps the government is likely to take to aggressively curb use of polluting vehicles and usher an era of electric vehicles in line with global trends. This measure portends well for the auto sector in the medium term as it is likely that a large number of older commercial and private vehicles will be replaced by newer fuel efficient vehicles, thus requiring large additional investments by auto and auto parts manufacturers.
Further, with the FM’s budget proposing to make large outlays for capital investments in infrastructure and on improving public transport, the auto sector is likely to see a surge in investments and employment opportunities in the near to mid-term’.
What’s in the budget for MSMEs: Sanjay Phadke EVP – Platform & FI Business Head, Vayana Network
MSMEs generally depend upon big businesses in the supply chain and the overall buoyancy in the economy for those that deal with retail. The budget is definitely a Big Bang with far more focus on enhancing macro spending across healthcare, infrastructure and large scale manufacturing. The resultant virtuous cycle will provide a significant tailwind to MSMEs too. There are many specific measures on changes in duties, easier compliances etc that would provide support to MSMEs that are ravaged by Coronavirus crisis. There is also a strong underlying theme of digitisation and improving access to capital for those that are compliant and digital which will help MSMEs contribute in a big way towards the target of 5 Trillion Dollars economy.
