Business Today - - THE BUZZ - -Su­mant Ban­erji

NOT TOO long ago, made-in- In­dia cars were a hit in global mar­kets. Maruti Er­tiga, Toy­ota Etios, Ford Figo and EcoS­port, and Hyundai i10 were seg­ment lead­ers in mar­kets as var­ied as In­done­sia, South Africa, Al­ge­ria and Colom­bia. How­ever, pas­sen­ger ve­hi­cle ex­ports have de­clined over 4 per cent in this fis­cal, ow­ing partly to the fact that ma­jor ex­port des­ti­na­tions are no longer grow­ing.

For rel­a­tively smaller play­ers Nis­san, Ford and Volk­swa­gen, the delays in trans­fer of GST credit un­der the new tax regime is a mas­sive set­back. Es­ti­mates sug­gest that the pend­ing amount the gov­ern­ment needs to pay these com­pa­nies has crossed ` 1,000 crore. While ex­ports may take a beat­ing for the rest of this fis­cal, In­dia’s longterm po­ten­tial as a low­cost pro­duc­tion base re­mains in­tact. The prob­lems of fis­cal 2017/18 may just be a blip.

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