In a move that echoes with Atmanirbhar Bharat’s sentiments, the call is for the Auto industry to reduce imports.
Self-reliant in a resilient economy
- The Modi government has pushed the Auto industry to reduce imports and raise domestic manufacturing to achieve a more conspicuous role in the global supply chain as part of its efforts to make the nation economically independent.
- Highlighting in Society of Indian Automotive Manufacturers’ (SIAM) Annual Convention, Union Minister of Trade and Industry and Railways Piyush Goyal informed India’s automotive industry should strive for global supremacy, both in terms of auto components and finished goods.
- Presenting examples of established auto clusters, such as Sanand, Manesar, and Hosur, Goyal said India needs to look at upgrading its domestic ability and enhancing its global economic contribution.
- This will also probably improve the economy by creating massive employment opportunities at a time when the country is battling to shake off the adverse impact of the pandemic lockdown.
- Nitin Gadkari, Union Minister for Road and Highways Transport, and micro, small and medium-sized enterprises urged to wary on imports, amplify import substitutes, and grow the export business. He also assured the government’s support to increase production and improve employment prospects.
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- He further expatiated for import alternatives and investment in research and development (R&D) and export volumes. The government would create industrial sectors along the 12-lane Mumbai-Delhi expressway. The expressway goes across Haryana, Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra’s backward tribal regions. The cost of purchasing land in those areas is weak. The land rate is 2-2.5 crore per acre in Gurugram or any major city. The minister however expressed his willingness to give land for Rupees 10-15 lakh per acre in such places.
- The Auto industry to reduce imports, notably in areas such as steel, tires, and electronic parts. Goyal said that he has direct an industry to seek out an adequate model for setting business units for semiconductors, which will considerably heighten electronic component output.
- The Government is consulting with other countries to overcome tariff and non-tariff barriers, including a free trade deal with the European Union to make India a competitive supplier. Gadkari and Goyal have indicated that the government is considering increasing duties on the importation of automotive parts.
The objective of reducing auto imports will capitalize on an enduring domestic auto industry – locally and vocally.