A loan solution
“The government should just lower the interest rates to eight per cent and that is the only remedy we need. Around 10,000 jobs might be affected in the auto ancillary sector in Pune. The current slowdown we are witnessing is cyclical which happens every 10 years. The last time it happened was in 1998. During every slowdown there are companies, which close down, especially the small ones with a couple of machines,” said Vikas Takvane, owner of Siddeshwar Industries, an medium-sized auto ancillary unit in Pimpri.

According to Takavane, even if these companies are given loans they would not be able to sustain themselves once the work orders are down to a trickle as is the case in the auto sector.