Auto export promotion council proposed for Tenth Plan

Amiti Sen

New Delhi, Dec 2: The government is proposing to set up an export promotion council for the automobile industry during the Tenth Plan to boost exports from the sector. The Centre may also devise a scheme for setting up research and testing facility jointly with the industry during the Plan period.

Creation of an export promotion council has been a long-standing demand of the auto industry, which had suggested that the council could be set up under the aegis of the department of heavy industries to provide a focussed thrust on export of auto-components and accessories, including vehicles.

In a recent meeting chaired by Planning Commission member NK Singh and attended by representatives from department of heavy industry & public enterprise, department of industrial policy & promotion, ministries of transport & highway, petroleum, environment & forest besides representatives from industry chambers and automobile associations, the prospects and strategy for growth of the auto industry was discussed in detail.

Representatives from the automobile industry pointed out that there was considerable potential for exporting auto components and the industry had set an export target of $1 billion to be achieved by 2005 and $2 billion to be attained by 2010.

At the meeting, the secretary of the department of heavy industries observed that the volume of trade in the auto sector was very important and steps should be taken to create demand. He said that an export promotion council has to be set up for promoting automobile exports in the next five years.

Mr NK Singh said that in view of inadequacy of testing and research & development (R&D) facility, the commission would support a scheme in the Tenth Plan wherein the government and auto industry associations could jointly participate for setting up such facilities.

On the issue of customs duty on import of auto parts, associations said that the present levels should be retained in order to promote value addition within the country.