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Business trends

Indian automakers count on populist interim budget to boost sales

Shares soar in Maruti Suzuki, Hero Motocorp and consumer goods companies

Indian automobile manufacturer Aftek Motors' Knight Rider 170cc motorcycle on display at the 2018 Auto Expo in Greater Noida, near New Delhi (AP Photo/Altaf Qadri).

MUMBAI -- Companies and investors in India's consumer sector are hoping for an increase in spending in rural areas and among the middle classes after Prime Minister Narendra Modi's government on Friday announced measures that will benefit these segments of society.

In the interim budget, presented by cabinet minister Piyush Goyal, the government introduced a farm income support scheme, proposed a full tax rebate on annual earnings of up to 500,000 rupees and raised the standard deduction of income tax from 40,000 rupees to 50,000 rupees. In addition, capital gains on the sale of a house will now be waived if the money is invested in a second house.

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