The letter has been published in “The Hindu Business Line”
This refers to ‘Auto sector crisis has hit 5 lakh workers in Pimpri Chinchwad belt’ (August 21). The automobile, retail , airline and other industries are currently undergoing a crisis. Seven segments of the Indian industry show reduced and contracted growth. The implementation of the GST and demonetisation have caused a severe blow. The results of which can be seen in the falling GDP numbers in the past four quarters. The IL&FS scam led to the NBFC credit crunch. Tariff wars between the US and China also affected Indian industry. The macro-environmental factors of taxes, tight monetary and fiscal policies, political unrest, and tariff barriers have led to a fall in the rupee value. All of these have contributed to the slowdown in the automobile industry.
This letter has been written by Harsha Sheelam.