The domestic auto sector may witness a demand cycle recovery over the next two to three years, supported by strong macroeconomic stimulus measures such as the upcoming Pay Commission salary revision, income-tax rate reduction, and interest rate cuts, highlighted a report by Incred Research.
The net revenue shortfall arising from the recent Goods and Services Tax (GST) rationalisation, estimated at around 0.1 per cent of GDP for the current fiscal, is expected to be offset by the higher dividend transfer from the Reserve Bank of India (RBI), noted a report by CareEdge Ratings.