Minister tells car manufacturers to expand global footprints
The Indian Automotive Industry is at the inflection point and is poised to grow fast, Commerce and Industry Minister Piyush Goyal has said at the 62nd Automotive Component Manufacturers Association (ACMA) Annual Session in New Delhi on 14 Sept 2022.
The Minister also urged the industry to expand the Indian car industry footprints internationally and make India a world leader in Automobile sector.
Touching upon the session theme, ‘Future of Mobility – Transforming to be Ahead of the Opportunity’, Goyal remarked that the future of Automotive Component Industry rests on being more Connected, focussing on Convenience, orienting towards Clean Energy and clean mobility as well as using Cutting-edge technology.
Expressing confidence on the growth story of the industry, he emphasised that the focus should now be on Quality and Cost competitiveness.
The Minister noted that while in the last few years Automobile Industry faced challenges of subdued demand and slowdown mainly due to Covid, the worst is over now and record number of sales for two and three wheelers suggests that the industry is back on track.
Recognizing the huge potential of the Automotive sector, Goyal said the industry contributes significantly to the GDP, creates jobs, encourages skill development, values talents and has an ecosystem which has a considerable impact on the society.
He reiterated the commitment of the Government in supporting the industry through initiatives such as Production Linked Incentive Scheme (PLI).
Also, the government is focused on supporting the semiconductor ecosystem, he added.
Noting that the countries across the world are looking for trusted partners and resilient supply chains, the Minister said, “I don’t think there is a comparable opportunity of the size and scale of India anywhere else in the World”.
Informing that negotiations on FTAs with several countries are progressing well, Goyal said he was hopeful that the Economic and Trade Agreement (ECTA) with Australia would be passed by their parliament by the end of this year.
Goyal gave 5-point action agenda to the industry:
Focus on Quality in order to become globally competitive and reduce dependence on import.
Think holistically and have a larger vision to engage with others in the spirit of openness and competitiveness.
Give emphasis on Value Addition.
Exit Uncompetitive market and explore new market opportunities in sectors where we can be competitive.
Think big and set aggressive targets and ambitions for the industry.
Goyal asked the industry to organise in a way so that the informal sector and smaller players also can benefit from the Government support.
Complimenting the Industry for focusing on localization and promoting local auto components, Goyal asked the Auto component industry to approach the government in case they face any pressure or are forced to import from preferred suppliers rather than localising.
Stating that the government will take serious note of such feedbacks, he assured full support of the government in ensuring fair trade practices. fiinews.com
