More lockdowns will destroy business, employment and the economy without necessarily controlling the spread of the disease, Rahul Bajaj said in his last letter to shareholders as the Chairman of Bajaj Auto.
The letter written on April 29 was made public on Wednesday as part of the company's annual report.
“Let us hope that rapidly accelerated vaccinations coupled with a strict enforcement of masks and social distancing will soon bring the second wave under control,” Bajaj said.
After the full national lockdown during 25 March to 30 April 2020 and partial lockdown that continued in varying stages up to 30 November 2020, things were gradually moving for the better, he said.
Growth to be hit
“Subsequent to the first and second quarters of FY2021 — when real GDP crashed by 24.4 per cent followed by another 7.3 per cent — we were beginning to see some green shoots of recovery. October-December 2020 showed a small but positive GDP growth of 0.4 per cent. We were looking forward to another quarter of positive growth in January-March 2021. With the second wave that started in March 2021, I doubt whether we will see that growth. More worryingly, I am concerned about Q1 FY2022 and what a series of state-wide lockdowns might do to businesses and economic growth,” Bajaj said.
Bajaj had resigned from his position of non-executive director and Chairman at Bajaj Auto. He was replaced by Niraj Bajaj, non-executive director of the company, with effect from May 1, the company said.