'FTAs can open up big markets for India to expand'

Maruti Suzuki India chairman RC Bhargava strongly bats for Free Trade Agreements for competitive exports and lower taxation to help boost domestic demand for cars, writes Ketan Thakkar.

- Ketan Thakkar.

Bureaucrat-turned chairman of Maruti Suzuki India (MSIL) R C Bhargava says that India should aggressively move and reduce tariffs and get into Free Trade Agreements (FTAS) as they will open up new business opportunities in big markets. The longest-serving Maruti Suzuki leader said that India Auto Inc should give up its "protectionist mentality to protect their interest. Survive or go under. It is better to grow under competition. I think our interest is by subjecting ourselves to the competition."

Bhargava believes India has the capability of being "far more competitive in manufacturing" than anywhere else in the world. "I am not in the least concerned about competition from elsewhere. People do fear that there will be dumping in India-I think we can stand a certain volume but FTAS open up big markets for us to expand."

Clarifying that these views are his personal ones and not an industry perspective, Bhargava adds, "I believe we can compete not through the dumping route but by providing good quality, highly competitive vehicles for many parts of the world."

India is currently engaged in Free Trade Agreement (FTA) talks with the UK and EU, which may have a big bearing on the fortunes of the automotive industry if the mutually beneficial deals can be worked out.

Urges rationalisation of high taxation levels

Bhargava is of the firm opinion that the Indian automotive industry continues to struggle from high taxation rates and there is a serious need to rationalise them.