In a strong and timely statement, Maruti Suzuki India Chairman R.C. Bhargava has called on the nation to stand firm and united in the face of the United States’ newly imposed 50% tariffs on Indian exports. Speaking at the company’s 44th Annual General Meeting, Bhargava described the move as a form of “economic bullying” and urged Indian industry and policymakers to respond with dignity and resolve.
A Call for National Unity
Bhargava emphasized that India must not give in to pressure tactics and should instead protect its economic sovereignty.
“It is our duty as Indians to do our very best to promote and maintain our dignity and respect and not give in to any kind of bullying in this matter… the nation has to stand united,” he said.
The tariffs, which came into effect on August 27, are expected to hit several labor-intensive sectors hard, including shrimp, apparel, diamonds, leather, footwear, and gems and jewellery. These industries not only contribute significantly to India’s export earnings but also support millions of jobs.
Global Uncertainty and Trade Disruption
Bhargava noted that the tariffs have triggered upheaval across global markets and forced countries to rethink traditional trade relationships.
“President Trump has in many ways forced nations to rethink conventional policies and relationships. Personal use of tariffs in diplomacy is being seen for the first time,” he told shareholders.
The remarks come amid growing concern that unilateral trade actions by the U.S. could destabilize emerging economies and disrupt supply chains.
GST Reform: A Ray of Hope
In addition to addressing the tariff issue, Bhargava welcomed the government’s proposal to restructure the Goods and Services Tax (GST). He expressed optimism that the GST on small cars could be reduced from 28% to 18%, making them more affordable for middle-class consumers and first-time buyers.
“We are all hopeful that the proposal which the Prime Minister made will result in the GST of small cars reducing to 18 per cent, but we have to wait till the official announcement is made,” he said.
The proposed two-tier GST structure—5% and 18%, with a special 40% rate for select items—is seen as a major reform that could stimulate demand and boost industrial activity.
Implications for the Auto Sector
Maruti Suzuki, India’s largest carmaker, has long been a champion of affordable mobility. Bhargava argued that lowering taxes on small cars would not only revive demand but also support job creation and economic growth.
He also highlighted the need for taxation parity between electric and hybrid vehicles, suggesting that all clean technologies should be incentivized equally to promote sustainability and reduce dependence on fossil fuels.
Conclusion
R.C. Bhargava’s remarks reflect a broader sentiment within Indian industry—that the country must respond strategically to external pressures while continuing to push for domestic reforms. As India navigates a complex global trade environment, unity and resilience will be key.
The message is clear: India must protect its economic dignity, support its industries, and stand up to unfair trade practices. And leaders like Bhargava are helping shape that narrative.
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