Commerce and Industry Minister Piyush Goyal on Monday asked Indian auto component makers to explore ways to cut reliance on imports and boost local manufacturing to make the country a net exporter of these products.
Addressing the annual conference of Automotive Component Manufacturers Association (ACMA), he said a portion of or the land of the 20 new industrial cities cleared by the Cabinet recently may be reserved for auto component industry.
Asking the companies to set target $100 billion in exports by 2030, the minister said: “I would urge some of you to examine and see if you want me to dedicate one or two (industrial parks) to your industry. I am happy to do that. The industry can take it over and develop it to suit itself.”
Last month the cabinet approved 12 industrial cities which will take the total number of such smart manufacturing zones to 20. Four zones are already functional and four are being built. The industrial smart cities will be spread over 26,000 acres.
Goyal also expressed concern over the auto component imports from Korea, Japan, Taiwan and China and asked whether it was being done under compulsion or voluntarily. Compulsion could be in the form of insistence from the parent company on sourcing on their global suppliers.
“I do not understand why even 2 or 3 levels down, we cannot plan to become indigenous suppliers and manufacturers so that we can then start supplying those component to other countries With scale much bigger market can be found locally and the industry can get to its goal of $ 100 billion in exports by 2030,” he said. The auto component exports from India stand at $ 21.2 billion while the total size of the industry is $ 74.1 billion,
To drive growth the minister advised Indian companies to also look at acquisitions abroad that can bring in newer technologies also. Similarly it should also look at getting some part of the $ 100 billion investment that the four countries of European Free Trade Association (EFTA) has promised in their FTA with India. While EFTA may not have much manufacturing but can help with technologies and investments, Goyal said.
India, the fifth largest economy in the world, is the third largest auto market. As it will move to the third largest economy the auto industry should also be looking at improving its standing.
