Guwahati : Assuring his countrymen with economic growth by 3 trillion dollar PM Modi led government is now seeing a breakdown of the economy within 50 days of the formation of the BJP government for the second term.
Breakdown in the economy
The Automotive Component Manufacturers Association of India (ACMA) which represents the auto component industry that alone employs around 5 million people sought a uniform GST of 18 percent for the entire automobile sector in order to revive the vertical which has now witnessed 10 months of continuous decline in sales.
Many to lose job due to economic breakdown
The ACMA while considering the fact that the auto component industry grows on the back of the vehicle industry, a current 15-20 percent cut in vehicle production has led to a crisis-like situation and that if the trend continuous, the layoffs are inevitable and an estimated 10 lakh people could lose their jobs.
The investors of the automobile industry have to face a loss of 12 lakh crore in the share market and their expectation has turned into desperation. It may also be mentioned that even the economic development of the country has been reduced.
ACMA President Ram Venkataramani, however, said that vehicle sales in all segments have continued to plummet for the last several months thus impacting the component segment as well. He said that in the components industry, nearly 70 percent of the workforce is contract workers and whenever there is a demand slump, there is a reduction in workers.