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Kiran Mazumdar seeks steps to save jobs in auto biz
Biocon Chairperson and MD Kiran Mazumdar Shaw has said measures are required to save jobs in automotive sector which represents 50 per cent of the manufacturing sector jobs in the country.
Shaw’s reaction on twitter came after automobile sale in India witnessed its worst-ever drop in August with despatches in all segments, including passenger vehicles and two-wheelers, plummeting to an all-time low. “Passenger Vehicle Sales See Worst Ever Monthly Drop Since 1997-98 - we need measures that are not about saving auto sector but about saving 50% of manufacturing jobs in the country which is what Auto sector represents,” Shaw said in a tweet, tagging Finance Minister Nirmala Sitharaman and Transport Minister Nitin Gadkari.
In another tweet, she said: “Passenger Vehicle Sales See Worst Ever Monthly Drop Since 1997-98 - it would be good to see GST collections in each slab to evaluate impact of tinkering with 28 per cent rate. Consumer sentiments need to be boosted by changing perception.” With prolonged slump in sales, automobile and component manufacturers have been seeking GST cut on automobiles to 18 per cent from 28 per cent to help the sector come out of a prolonged slump that has resulted in job losses.
Already, 15,000 contractual jobs have been lost in the automobile manufacturing and around 2.8 lakh in dealerships, while components manufacturers are staring at 1 million job losses if the downturn continues.