More lockdowns will cause job drought in the market: Bajaj

Mumbai: Lockdowns to contain the Covid-19 pandemic destroy businesses, jobs, and the economy without necessarily controlling the spread of the disease, Rahul Bajaj renowned industrialist and former chairperson of Bajaj Auto said in his last letter to shareholders. The octogenarian retired in May after chairing the company’s board for 49 years.

“Let us also hope that we do not react to the epidemic by declaring more lockdowns, as we did the last time,” he said in the company’s latest annual report.

Bajaj and his son and Bajaj Auto managing director Rajiv Bajaj have been critical of shutdowns on public fora. The latter had told politician Rahul Gandhi in a widely watched interview last year that the lockdown had flattened the wrong curve in India – the GDP growth rate instead of the Covid-19 infection rate. Rahul Bajaj said he was concerned about the state of the economy in the quarter ending June and what the numerous state-wide lockdowns in the country might do to businesses and economic growth.

Recounting the number of Covid-19 infections and deaths around the world, Bajaj said, “Everything suggests that, in epidemiological terms, things will get worse before getting better.”

He pinned his hopes on rapid vaccination as well as the strict enforcement of mask-wearing and social distancing to bring the second wave under control.

In his letter, senior Bajaj also highlighted the company’s performance during the pandemic. It posted revenue of Rs 27,133 crore for FY21, which, despite declining by 6.8% over FY20, was the third-highest in Bajaj Auto’s history. “Given the circumstances, I believe that these are creditable results,” he said.

“Your managing director, Rajiv Bajaj, his team, and every employee of your company should be collectively congratulated for the tremendous efforts that they have made in the most difficult year that our country has witnessed,” he said.