It is highly possible that the government would announce some measures for the real estate and auto sector in the coming weeks.
Both these sectors generate a lot of employment and would definitely need some kind of relief measures.
A million contractual manufacturing jobs are at risk due to the consumption slowdown, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said, this week.
The slowdown has forced the value-chain operators across the automobile industry to reduce production and downsize workforce.
Speaking at the SIAM annual convention, Wadhera said, “Till now, 15,000 contractual manufacturing jobs have been lost and another million are at the risk, if the slowdown,” he noted.
Tata Motors managing director Guenter Butschek warned of dire consequences if the government didn’t act.
“The Indian automotive growth story is about to collapse,” he said during a panel discussion.
Maruti Suzuki Ltd said earlier this week, it was shutting passenger vehicle manufacturing factories in Gurugram and Manesar in northern India for two days this month.
Several analysts believe that the government should slash GST rates on cars from 28% to 18% to revive demand. The GST Council is to meet on Sept 20 and there are hopes that a cut may go through.
Auto stocks already rallied on Friday and there are hopes that a GST cut could provide further impetus to these stocks.