Driving Gujarat

Maruti Suzuki’s decision to set up a 1-million-car facility in Gujarat should get chief ministers of various states, not just Haryana, seriously worried. A total of six automobile majors have, within the last year or two, announced plans to set up capacity in Gujarat for a variety of reasons, the most important of which has their being unhappy in the state they are currently in—in the case of Bajaj Auto, it was a fight over sales tax refunds that was the turning point in Maharashtra; in the case of Maruti, although the decision to go to Gujarat was taken before the current round of labour strife began, the company has had a series of labour disputes in the past and so the management was keen to diversify its risk.

Read Full Story>>