Automotive Industry is at the inflection point, poised to grow significantly: Piyush Goyal
Future of Automotive Component Industry -
Connected, Convenience, Clean Energy and clean Cutting-edge technology’: Goyal
Asks Auto component industry to approach the government if they are being
forced to import rather than localising
Urges Industry to expand its footprints internationally and make India a world
leader
Goyal addresses 62nd Automotive Component Manufacturers Association (ACMA)
Annual Session
Union Minister
of Commerce and Industry, Consumer Affairs, Food and Public Distribution and
Textiles 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 in New Delhi today.
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, 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,
Shri 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.