Nissan welcomes Union Budget's focus on maintaining fiscal deficit

“The Union Budget 2016 has continued with the government’s focus on maintaining fiscal deficit, agriculture, infrastructure development and recapitalizing of PSU banks. The budget gives special focus on the economy at the grass-root level which will have an overall positive impact in the long run," Sicard said in statement.

"Additionally, we also welcome Government’s decision to amend the Motor Vehicle Act in passenger vehicle segment to allow innovation. This, coupled with a focus on infrastructure will help improve the overall public transport in the country," he said.

Sicard said there is not much for Auto industry in this budget.

"Infrastructure cess increase up to 4% on passenger vehicles will definitely have an impact on the prices. We do not foresee that to be a major burden for small car buyers but the luxury cars and SUVs will feel the heat. We are still trying to understand the modalities of collection of TDS of 1% on more than 10 lakh priced cars," said he.

"Further, curbing incentives on in-house R&D spends from 200% to 150% is not very positive. There is no presentation on roadmap for GST implementation, additional Incentives for Electric Vehicles and Hybrids under FAME Scheme and the plan for Vehicle Scrappage scheme which is damper,” he added.

Jaitley on Monday presented the Union Budget 2016 focusing on rural development and farm and social sector along with infrastructure with analysts terming it a pro-poor, pro-agriculture move that throws a challenge to the government to implement in reality.

Major focus of the budget is on agriculture and farmers’ welfare, with a massive mission to provide LPG connection to poor households, a new health protection scheme, increased outlay for infrastructure,  Rs. 2.87 Lakh crore Grant in Aid to Gram Panchayats and Municipalities and setting up of 1500 Multi Skill Training Institutes and incentives for jobs creation.