FM must take front seat to drive auto sector’s growth agenda
The Indian auto component sector, being predominantly dependent on domestic original equipment manufacturers (OEMs), is also facing a sluggish growth. Global OEMs are increasingly shifting to indigenous production to reduce rising imports bills due to the volatile currency market, which could provide the next growth avenue for component players. While global OEMs are becoming indigenous, exports to their group entities could also grow with the focus on quality and international standards. The finance minister could restore sops in the form of export-linked incentives for companies meeting international quality standards to increase competitiveness among players to exploit this opportunity.
On a macro level, the Indian economy is on the verge of witnessing major tax and corporate reforms with the DTC, GST and the Companies Bill just around the corner. The recently concluded meet of
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