A million people may lose jobs in auto sector

Society of Indian Automobile Manufacturers’ President Rajan Wadhera believes that a million contractual manufacturing jobs are at stake due to the slowdown in consumption. High GST rates, farm distress, stagnant wages and liquidity constraints have also taken a toll on the industry’s performance. The value chain in the sector is already experiencing reduction in production. 

“The automotive industry accounts for almost 50% of manufacturing gross domestic product (GDP), 15% of goods and services tax (GST) and employs 37 million people directly and indirectly,” Wadhera stated. He also reiterated the demand for lowering of GST on automobiles from 28% currently to 18%.