Ahead of this year’s Budget, leading car manufacturer Maruti Suzuki on Monday asked the government not to roll back the entire stimulus package at once as it may hamper economic growth.
“If the entire stimulus is withdrawn all at once, it may not lead to economic growth happening in the way it should happen,” Maruti Suzuki India Chairman R C Bhargava said on the sidelines of an All India Management Association Award function.
Industry players have demanded that the stimulus package should be continued in the Budget as the industry is not yet out of the woods. Bhargava said, “Somebody has to take a balanced view (as to) what will lead to economic growth and what will also lead to financial stability.”
Last week, Heavy Industries Minister Vilasrao Deshmukh had pitched in for the auto industry asking Finance Minister Pranab Mukherjee to continue with the stimulus package provided to the sector during the slowdown.
“For the auto industry, we requested that the stimulus for the sector should be continued (for some more time),” Deshmukh had said.
With the economy coming under the impact of the deepening global financial crisis since the middle of September 2008, the government had cut excise duty by six per cent that helped in reducing prices and spurred demand.