New Delhi: The automobile sector is going through a slowdown across the country. As per economists, the main reason behind the slowdown is the global recession. If the government has to strengthen in this sector, then the GST rate will have to be reduced.
Talking to ETV Bharat, economist Akash Jindal said that the impact of global recession is also being seen in India and that is why there is a slowdown in the automobile sector as well.
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According to Jindal, if the central government reduces the GST rate in the automobile sector, then this sector can be pulled out of the slowdown. He also suggested that the auto companies which are still in good condition should be assisted by banks.
Jindal said that the liquidity crunch in the market has come due to the problem in NBFC (Non-Banking Financial Company) and if the government allows auto companies to get lendings from banks, then it will strengthen the economy and the auto sector will get better returns.
