Economy hit by lack of political consensus: RC Bhargava

NEW DELHI: Maruti's president, R C Bhargava, said the lack of political consensus is slowing the Indian economy, which, in turn, is limiting India Inc's ability to make new investments and create new jobs. The need of the hour is to develop long-term growth strategies focused on the industry, rather than being short-term in our thinking.

“The growth of the economy and the growth of manufacturing must be the priority. We need a political consensus on how to grow the economy, Bhargava told TOI when asked about the slowdown pains that have affected the Indian economy, the country's industrial production and manufacturing sector, and the automotive industry.

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There have been so many measures that stalled in Parliament and in the Rajya Sabha . It has an impact on the economy, said the president of the largest automaker in the country, adding that there should be an agreement between the various political parties on how to move forward. It is not a political issue, but (something that is) in everyone's interest. We have not yet reached a national consensus on what is the method of economic growth.

Bhargava said that the fundamental question for the country and the different political parties should be how to make the economy recover health and what long-term strategies are necessary for the growth of the manufacturing sector and its various components.

“The recession gives us the opportunity to think deeply and in the long term. Do we all agree that the private sector has to grow faster to create manufacturing growth or not? Do you all agree on this or not? If this happens, then other things will follow. This should be an element of consensus. For faster manufacturing growth, the private sector must receive most of the momentum. Can we have a national consensus on this?

“We need to accelerate our growth rate. Unless the growth rate increases, no investments will be made. Investments are made only when existing capacities are becoming inadequate. But if we have available capacity, why are companies going to invest? ”Said Bhargava. Remember that jobs will be created only when we have a growth in manufacturing.

Depressed feelings in the auto industry have seen Maruti's parents Suzuki Giving a bleak outlook for this fiscal year, as he said that sales in India could fall by 20%, compared to the previous estimate of a 4% growth.

We are not growing as we need to grow at this time, Bhargava said when talking about the automatic slowdown. Industry investment plans are not strong in view of the difficult economic growth climate. “New investments will come once we see that the demand increases. Everyone makes investments according to the requirements.

The president of Maruti said that while the Narendra Modi The government is working on plans to revive growth, it is necessary to have long-term strategies instead of launching short-term drivers. “More long-term planning is required at the micro level. The government needs to provide inputs, and the rest must be done by the industry. In regards to Maruti, we cannot make firm long-term plans. We do not know what we are supposed to do.