Scaling down auto sops prudent: Deshmukh

Rs 80,000 crore has been allocated as part of the government action plan to invigorate the auto sector and fuel growth. Rs 40,000 crore has been distributed for the development of different manufacturing plants across the country for Tata Motors,Maruti,the remaining rupees will be doled out by 2016,according to the automotive mission plan 2006-2016.

Although numbers appear to be solid and gaining in strength,auto industry experts are still wary about their stability out of fear that a second windfall could breach the makeshift barriers of economic growth. Theres still total uncertainty for the global economic environment,theres still a possibility of a double dip happening, said Dilip Chenoy,director general,Society of Indian Automobile Manufacturers.

Growth forecasts call for consumer sales as high as 16 per cent during the next two years in order to meet the targets of the automotive mission plan of 2016. We will be running to catch up with the goals, Chenoy said. The needs of mobility of the people of India may not be met,but not only that,that kind of economic growth may not be as inclusive or evenly spread as you want it to be, he said.