Anuj Kapoor took over his father’s booming auto parts business in 2012, hoping to elevate the company from selling to suppliers to selling directly to carmakers.
Seven years later, he’s had to lay off half his workers as drooping sales caused his profit to plummet by at least 80%.
Confidence in the Indian economy is giving way to uncertainty as growth in the labor-intensive manufacturing sector has come to a near standstill, braking to 0.6% in the last quarter from 12.1% in the same period a year earlier.
The economy grew at its slowest annual pace in six years in April-June, 5%. Many economists believe Prime Minister Narendra Modi’s signature economic policies are at least partly to blame.
A surprise demonetization in 2016 and the hasty rollout of a goods and services tax were dire blows to manufacturing, especially the auto industry. The fourth largest in the world, it’s a pillar of the Indian economy, contributing 7.5% to the country’s GDP.
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