Goyal notes the need to have open domestic market while Indian industry seeks global trade participation
Commerce and Industry Minister Piyush Goyal applauded India’s auto components industry at the 7th Technology Summit 2022, noting its first time achievement of posting a trade surplus of US$600 million amidst global market uncertainties.
“The nimble Government and agile Industry working together collectively could capture markets across the world,” stressed Goyal, highlighting the recently approved Rs.76,000 crore Semicon India Programme to help reduce import dependence and eventually become self-sufficient in domestically manufactured chips.
“India could no longer afford to be closed and protective but will have to open up our markets along with striving to achieve greater penetration of global markets,” he underlined.
Disrupt existing targets, set higher benchmarks for performance and aspire to take five Indian companies in top 50 global automotive suppliers club, said Goyal, encouraging the industry to identify core competencies and isolate key areas to reduce import reliance.
He also told the auto components industry to be future ready, stressing on the need to invest in R&D especially in e-mobility and battery-technology.
The Minister also called for designing world-class quality standards in the automotive industry which is worth more that US$100 billion and contributes 8% to the country’s total export as well as 2.3% to the GDP. The sector is set to become the 3rd largest in the world by 2025.
The Atmanirbhar Excellence Awards and 7th Technology Summit 2022 was organized by the Automotive Component Manufacturers Association (ACMA) in New Delhi on 17 Mar 2022.
Goyal appreciated the resilient auto industry players who adapted and evolved to keep the industry going despite the five Cs, — challenges of COVID-19, container shortages, chip shortages, commodity prices and conflict.
The government was sensitive to auto sector’s concerns related to chips shortage, he assured.
Highlighting India’s capabilities in the field of auto components manufacturing, the Minister asked automakers to make greater use of made in India components.
Stating that the Government held back stringent norms regarding import substitution due to Covid-19 and industry assurances on securing equal market access, he urged automakers to buy local and substitute imports.
Spelling out the opportunities for the future of mobility, Goyal said that mobility of tomorrow would be dependent on the 7 Cs, – Common, Connected, Convenient, Congestion-free, Charged, Clean and Cutting edge.
India was poised at the cusp of an e-mobility revolution that in the next 15 years and mobility landscape is expected to undergo a deep structural change, he said, advising the auto-makers to look upon sustainability as an opportunity and not a challenge.
He asked the automotive industry to work on improving the e-mobility ecosystem, including fuel cell vehicles with Hydrogen storage, higher Lithium-Ion battery capacity at low price and better charging infrastructure.
He also cautioned automakers that the cost of not investing in innovation and evolving to meet the needs of the future would be obsolescence.
Referring to the budgetary push to the EV industry, Goyal felt that India has the potential to become a hub for electric vehicles (EVs) and Integrated Circuits (ICs) technology.
Expressing concern that lower volume of production would prohibit scale of production thus affecting business viability, he called for the promotion of scale of production in e-mobility. fiinews.com
