Volvo bets big on India reforms
STOCKHOLM: Swedish auto giant Volvo is betting on economic reforms of the Narendra Modi government, including the recently introduced goods and services tax, for growth in India, adding that there is scope to improve the flexibility of hiring and firing labourers in the country.
“The Narendra Modi government is driving the development agenda. The number of reforms, including GST, will work as an engine in developing a modern India,” Martin Lundstedt, President of the Volvo Group, told ET.
Pointing out that GST has not only facilitated business between states, Lundstedt said the new tax regime will continue to bring in growth for both the company as well as the country. The Volvo Group, however, said there is room for the government to further liberalise its labour regime.
“We are working in extremely volatile times and hence there needs to be reasonable flexibility to up and down our workforce volumes,” Lundstedt said.
The Volvo Group has been in India for almost 20 years and has set up three production bases in the country to manufacture trucks, buses and construction equipment. The company, in association with Eicher, expects to double its turnover in India to $4 billion by 2020 from present levels.
Highlighting that the rollout of GST has resulted in 30% faster logistics, Kamal Bali, president of Volvo Group India, said the group is extremely bullish on the massive socio, economic and political transformation in India.