"This is a long-awaited measure and I am extremely happy that the Prime Minister has seized the opportunity of deregulating diesel price at a time when crude prices have fallen resulting in a reduction in diesel price due to the de-regulation," SIAM President Vikram Kirloskar said in a statement.
This is the most correct and forward looking measure, which proves that the Narendra Modi-led government is now seriously focusing on implementing the long-pending economic reforms that would propel the country into its next high growth phase, he added.
Last week, in a much-awaited reform, the government deregulated diesel prices that resulted in a price cut of Rs 3.37 a litre. Retail rates of the fuel will now reflect international movement in oil prices.
A Tata Motors spokesperson said: "Market-linked diesel pricing is a step in the right direction towards fiscal prudence as well as more competitive market that will help consumers and this will eventually have a long-term benefit for the economy."