Automotive industry set to gain more from ‘Make-in-India’
Mr. Anant G. Geete, Minister of State of Heavy Industries & Public Enterprises, has said that the auto and auto components industry plays a most crucial role in the ‘Make in India’ initiative and has assured that the Government will support the industry in developing India into a globally competitive manufacturing hub, delivering quality products made in India for the world. The auto industry has to necessarily channelise its energies and R&D efforts to make the Government initiative a big success.
Addressing a seminar on “Making of Auto and Auto Components” organised at the ‘Make in India Week’ held in Mumbai, Mr. Geete called for adoption of the latest and newer technologies and expansion of R&D activities. The Indian automotive industry is one of the largest in the world. Most major OEMs have set up operations in India. At the same time, the auto component industry has become an attractive supplier base for global markets. India has also emerged as a leading global hub for small cars with around 31 per cent of the vehicles worldwide being manufactured in India.
The auto sector’s impact on the Indian economy currently is significant as it contributes to seven per cent of the country’s GDP which is expected to increase to 12 per cent as per the Automotive Mission Plan 2016-26 (AMP 2026). Auto and auto components sectors together are the highest contributors to industrial and manufacturing GDP, with about 25 per cent and 45 per cent respectively.
According to AMP, a collective vision of the Government and the Indian automotive industry, the Indian auto industry will be in the global top three for engineering, manufacturing and export of vehicles, auto components; it will encompass safe, efficient and environment friendly conditions for affordable mobility by 2026. The industry is likely to grow in size from $80 billion to $270 billion by 2026 and generate an additional 65 million jobs.
Dr. Rajan Katoch, Secretary, Department of Heavy Industry, said there is need for all stakeholders, including the Government and the industry, to work together towards foreign trade, tariff, investment and long-term tariff regime.
Mr. Arvind Balaji, ACMA President, and Joint MD, Lucas TVS Ltd., said that India plays a very important role in the global auto component industry. There is need to create an R&D fund to facilitate start-ups.
Mr. Ravindra Pisharody, Vice President, SIAM, and Executive Director, Tata Motors, said that there are 30 R&D centres in the automotive sector. India is a strategic R&D destination as far as the automotive industry is concerned. There is an urgent need to create an eco-system that allows for innovation and R&D to proliferate. The industry has urged to the Government to create a dedicated fund to boost R&D in the component sector.