New Delhi, NFAPost: India must “not give in to any kind of bullying” after US President Donald Trump raised tariffs on Indian imports to 50% this month, said Maruti Suzuki India (MSIL) Chairman R C Bhargava on Thursday, urging national unity to uphold dignity and support the government.
On the domestic front, he said reducing GST on small cars could help counter the economic strain created by American tariffs.
“My hope and my expectation is that subject to approvals by the GST Council, we will see a revival of the small car market, overall faster growth of the car industry, more industrial activity, and larger generation of employment opportunities. I think all of this is needed in the current times when the tariff problems are creating a difficult situation in other parts of the Indian economy,” Bhargava said during the company’s annual general meeting.
MSIL expects the GST Council, which meets on September 3 and 4, to reduce the tax rate on small cars from 28 per cent to 18 per cent, a move he said would particularly benefit lower-end consumers. “We are hopeful that the proposal which the Prime Minister made (on August 15 from Red Fort) will result in the GST on small cars reducing to 18 per cent. But we have to wait till the official announcement is made.”
He said MSIL’s speed of expansion of production capacity is also linked to the GST council’s decision and its impact on car demand in India.
