Finance Minister P Chidambaram announced excise duty cuts for the manufacturing sector in the Interim Budget. But experts feel that these announcements might not give a boost to manufacturing.
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Sidharth Birla, Chairman of industry body FICCI, pointed out that the validity of these provisions and duty cuts is only till June since this was only a vote-on-account and not a regular budget.
"The manufacturing companies, especially automobiles, run on bigger inventories for which the taxes are already paid. But since the consumers expect price cuts they might have to do that," he said.
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It remains to be seen whether the new government would persist with the duty cuts, he added.