New Delhi: Modi government's ambition of reaching USD 5 trillion economy in the next five can get derailed if states don't realise their role in promoting manufacturing, Maruti Suzuki India Chairman RC Bhargava said.
Bhargava in AGM said it is time for state governments to become partners in making manufacturing industry grow and recognise the importance of its role in the overall auto industry.
The automobile sector accounts for 49 per cent of India's manufacturing gross domestic product (GDP).
"Automobile industry creates a lot of employment in states, but a slowdown or fall in sales conversely generates unemployment," he said, adding the sector creates a lot of revenue for states and "all of this is affected when the industry falls" .
Elaborating on the significance of state governments' role, he said they have "much more to do with the cost of operating an industry".
He further said, "...efforts of the central government can get derailed if some of the states don't recognise the important role they have to play in making this happen."