Doing business in India #39;infinitely better#39; now, but FDI still not coming in: RC Bhargava

Prime Minister Narendra Modi has made doing business in India ‘infinitely better’, but foreign direct investment (FDI) is still not coming in, Maruti Suzuki Chairman Ravindra Chandra Bhargava said in an interview to CNBC-TV18.

He said India has not been able to attract major manufacturing FDI over the last 70 years, adding that policies in the country have not been designed to promote competitiveness.

Bhargava said calls for boycotting Chinese products were an emotional reaction to the ongoing standoff along the Line of Actual Control (LAC) between the two countries. These calls were not thought through, he added.

According to him, raising tariffs on Chinese imports will hurt Indian consumers as “affordability is a big issue in India”.

Bhargava said that while Maruti Suzuki, as a company, does not need to import from China, the automaker’s vendors need to as Chinese imports are necessary for manufacturing vehicles. “We need to ask why India has not been able to manufacture all components in India,” he said.

Talking about the auto giant’s return to normalcy following the nationwide lockdown meant to curb the novel coronavirus pandemic, Bhargava said the company was not anywhere near 100 percent utilisation due to the stringent safety measures in place.

However, he added that most outlets, except for 300-400, had opened.

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