As India’s merchandise exports reached almost $390 billion as of March 14 , the Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles Minister Piyush Goyal has said that it will “certainly cross” $400-billion mark this fiscal.
He also said that auto components industry has, for the first time, recorded a trade surplus of $600 million.
Goyal was addressing the Aatmanirbhar Excellence Awards and 7th Technology Summit 2022, organised by the Automotive Component Manufacturers Association (ACMA) in the capital.
Goyal had also recently said that India will have a record services exports upwards of $240 billion this fiscal.
Make in India push
Highlighting India’s capabilities in the field of auto components manufacturing, the Minister asked automakers to make greater use of Indian made components.
Stating that the government held back stringent norms regarding import substitution due to Covid-19 and industry assurances on securing equal market access, the Minister urged automakers to buy local and substitute imports.
It may be noted that India’s automotive industry is worth more than $100 billion and contributes 8 per cent of country’s total export and accounts for 2.3 per cent of India’s GDP and is set to become the 3rd largest in the world by 2025.
Chip shortage
Goyal also said the government was sensitive to auto sector’s concerns related to chips shortage. The recently approved Semicon India Programme with a budget of ₹76,000 crore would help reduce import dependence and eventually help us become Aatmanirbhar in the arena of chips, he said.
Goyal added that the nimble government and agile Industry working together collectively could capture markets across the world.
Key challenges
The Minister 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.
He also highlighted that 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.
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.
Goyal gave a four-point call for action to the auto components industry to be future ready. He asked them to invest more in R&D, especially e-mobility, and battery tech. He urged them to set higher benchmarks for performance and aspire to take 5 Indian companies in top 50 global automotive suppliers club.
He encouraged them to identify core competencies and isolate key areas to reduce import reliance. He also called for designing world-class quality standards in the automotive sector.
Goyal 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.