Stability In Policymaking Crucial For Steering Investment Growth, Says Renault India CEO
Stability in policymaking is very crucial for growth in investment, says Renault CEO.
It is crucial for the government to maintain stability in policy making if not strategy, Sumit Sawhney, managing director and chief executive officer, Renault India, told BloombergQuint, commenting on the recent upward revision in cess on luxury cars.
Stability is essential, as such knee-jerk reactions do not support investments, he said at the sidelines of the annual convention of Society of Indian Automobile Manufactures (SIAM) in New Delhi.
The Union Cabinet last week cleared an ordinance to increase the maximum compensation cess for luxury cars and sports utility vehicles to 25 percent from 15 percent earlier as their tax burden has fallen under the Goods and Services Tax regime.
Sawhney further said that at a time when the meaning of 'luxury' is still unclear, such changes in less than 45 days of implementation of the GST is not good for growth.