Road Accidents Cause 3.14% GDP Loss

Mobility Outlook Bureau
15 Jan 2024
01:46 PM
1 Min Read

The Two Wheeler Helmet Manufacturers Association urges the Government to implement its proposals as they can reduce economic losses and enhance nationwide road safety.


Helmet Manufacturers Association mobility outlook

In a recent revelation, India faces a significant GDP loss of 3.14% due to road accidents, prompting urgent calls for the implementation of crucial recommendations outlined by Mr. Rajeev Kapur, President of the Two Wheeler Helmet Manufacturers Association and Managing Director of Steelbird Helmets. These proposals aim to reduce economic losses and enhance nationwide road safety.

Key Recommendations

Reduction In GST: Reduction in Goods and Service Tax (GST) on helmets from 18% to 5% will position helmets as life-saving devices. Besides, the reduction will enhance economic accessibility, encouraging widespread compliance with helmet usage.

Authorization Of Testing Facilities: Authorising institutions like IITs, QCI, and NGOs to establish helmet testing facilities will overcome the bottleneck in testing facilities. It will help streamline the testing process, ensuring helmets adhere to safety standards and are readily available in the market.

CSR Funds For Road Safety: Allocating 1% of Corporate Social Responsibility (CSR) funds for road safety initiatives will encourage corporate support by directing funds towards road safety awareness programmes, signage installations, speed breakers, and distribution of subsidised helmets to lower-income groups.

Enforcement: Enforcing Section 138 (4) (f) of the Central Motor Vehicles Rule (CMVR) uniformly across India will extend the mandatory helmet usage rule, currently applicable in only eight States, to ensure consistent road safety practices across the country, especially in Tier II, III cities, and rural areas.

If these recommendations are promptly implemented, they aim to not only mitigate the immediate economic impact of road accidents on India's GDP but also foster a safer road culture. The goal is aligned with India's commitment to halve road fatalities by 2030.

Kapur stresses the urgency of authorising reputed institutions and NGOs for helmet testing to expedite the process. The pressing nature of this issue calls for comprehensive action, urging collaboration among government bodies, corporate entities, and the public to build a safer road environment for all.

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