Confidence in the private sector is the way forward for India’s growth: Bhargava
The way forward for India on the road to growth and development is to rely on the private sector, Maruti Suzuki India Chairman RC Bhargava said on Saturday.
He thanked the current Center government for trusting the private sector and encouraging industry to be at the forefront of economic and industrial growth and job creation.
“After all these 60 to 65 years of government and public sector, I have no doubt in my mind that the way forward for India is to rely on the private sector,” he said. he told reporters here.
Bhargava was responding to a question on how he sees the way forward for the industry, particularly the automotive industry, in India in the next 10-20 years against the backdrop of Maruti Suzuki completing 40 years of successful operations . However, he said the private sector had its own flaws and was not without flaws.
”I’m not saying for a moment that the private sector is perfect. If you balance the negative and positive aspects of the private sector and the public sector, the balance is much more favorable to the private sector than to the public sector,” Bhargava asserted.
The public sector, through its constitutional restrictions, legal structure and the way checks and supervision take place, has not been effective, he added.
“Whatever type of people you put in the public sector, and I’m not talking about individual exceptions, I’m talking about the system as a whole, the public sector, is so handicapped by the whole environment… ,” added Bhargava.
He praised the government’s privatization programme, including that of Air India, while praising other reform measures such as the ease of doing business, the insolvency and bankruptcy code, the implementation of the GST and the reduction of corporate taxes.
“All these things suddenly made me think that India is changing, India has become different again, there is hope for the future,” Bhargava said. A few years ago he said, “I had become quite pessimistic about any kind of industrial growth in India. Various things were being said, but nothing was happening on the ground.” Bhargava said at one point that he was part of a committee set up by the then Planning Commission to increase industrial competitiveness.
”We had a lot of meetings, a lot of discussions, a report was written. But then nothing happened.
It’s like most government committee meetings where you have committees and table reports but then progress after this (is) slow storm,’ he lamented. Asked about the outlook for India’s auto industry, Bhargava said 2022-23 would be a record year considering the improvement in semiconductor supply with the Covid-19 induced problem already lagging behind.
“I think the production in India and in the auto industry in 2022-23 will be the highest level. I’m not just talking about Maruti, I’m talking about the auto industry,” he said.
In 2018-2019, national passenger vehicle sales reached a record 33,77,436 units and in 2021-2022, they were 30,69,499 units.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)