In order to provide a fillip to the capital goods and automobile sector, and given its commitment to revive the economic growth, the Government of India has decided to extend these duty concessions beyond June 30 for a period of six months upto Dec. 31, 2014. This announcement was made by the Union Finance Minister Arun Jaitley while making a statement before the media. He said that notification to this effect is being issued on Wednesday.

The finance minister Arun Jaitley said that we expect the industry to show positive results in the coming months. The finance minister said that we also expect that the benefit of these duty concessions will be passed on to the consumers at large.

Commenting on FM' announcement on excise duty, Subrata Ray, senior VP, co-head, corporate sector ratings, ICRA, ''The continuation of excise relief is a positive (auto/ capital goods) and provides some relief to OEMs  struggling with slowing demand. However, the overall impact on the industry would remain marginal - the industry turnaround would be contingent on demand recovery - and duty reliefs typically don't have any sustainable impact on demand.''