PIB | 14 Sep, 2022
Union
Minister of Commerce and Industry Piyush Goyal said the Automotive Industry
is at the inflection point and is poised to grow fast. He was
addressing the 62nd Automotive Component Manufacturers Association
(ACMA) Annual Session on Wednesday in New Delhi.
Touching
upon the theme of today’s session, ‘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 and
using Cutting-edge technology.
Expressing confidence on the growth story
of this Industry, Shri Goyal emphasised that the focus should now be on
Quality and Cost competitiveness.
He
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). The government is focussed on
supporting the semiconductor ecosystem also, 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”.
The Minister mentioned that negotiations on FTAs with
several countries are progressing well. 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 the 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 support of the
Government.
Complimenting the Industry for focussing 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 this, he assured
full support of the government in ensuring fair trade practices.
Concluding
the address, the Minister urged the Industry to expand India’s
footprints internationally and make India a world leader in Auto
Industry.