It is not Ford that is closing but over 4,000 SMEs closing. The worst anticipated has happened. Auto sector has seen painful times in last four years but largely ignored.
New Delhi: We did nothing to remove the blocks with policy intervention. Instead, we pushed for Mark IV first, reduced the gap between petrol and diesel prices with both nearing Rs100, refused GST rate reduction, pushed aggressively for EV policy, gave productivity linked incentives for EV sector and finally vehicle scrappage policy nailed their hopes and have become a silent spectator to this sad happening. MSME sector predominantly catering to various parts in a car such as upholstery, leather, dash boards, clutches, brakes, gear box, switches, meters, screens, cushions, lights, PVC supplies, Cables, hand brakes, bushes, fasteners, tyres, handles, paints either directly or indirectly have become closed. If the direct unemployment is 4,000, the indirect job loss is about 12,000. TN is worst hit with this decision as it is known as a base for many auto giants. The whole infrastructure created for vehicle exports, mobility, logistic sector will be impacted too. Several service providers such as Vehicle owners, canteen workers, hotels nearby, uniform supplier, safety good suppliers, house owners will lose their revenues with this decision, says KE Raghunathan, Convenor, Consortium of Indian Associations.