Bhargava: India Must Resist US Pressure and Tariff Threats

At Maruti Suzuki India’s 44th Annual General Meeting, Chairman R.C. Bhargava asserted that India must firmly address American pressure, including the possibility of 50% tariffs. He urged the country to stand united in support of the government and to resist any form of intimidation. He noted that any US decisions could significantly affect India’s exports and labor-intensive sectors such as apparel, diamonds, footwear, leather, and gems-and-jewelry, leading to potential job losses. He emphasized the importance of supporting the government and maintaining national dignity, refusing to yield to pressure. Bhargava also highlighted the significance of GST reforms, calling them a substantial and historic undertaking. He expressed hope that reducing the GST rate for small cars to 18% would strengthen the industry and boost employment opportunities. Currently, the GST on cars is at 28%, the highest slab, which significantly burdens small cars. SUVs can face taxes nearing 50%, while electric vehicles attract only a 5% GST. He believes that altering the GST could revitalize the small car market and acknowledged that the government is addressing the needs of lower-income consumers. Furthermore, Bhargava advocated for a ‘Kei car’ model similar to Japan’s, recognizing the reliance of millions of Indians on two-wheelers, and the need for smaller, affordable, and safer alternatives. He cited Japan’s ‘Kei car’ initiative from the 1950s as an example, noting that these cars are smaller, taxed less, and have simpler safety rules. He suggested that India should introduce similar cars to offer a better option to those who rely on scooters and motorcycles. He also stated that India should consider electric and hybrid car technologies, highlighting that both are growing in the US and Europe.