The recent mandate given to the Modi-led BJP Government has made the Indian economy revive from the worst-ever recessionary phase. Particularly for the automotive sector, the outcome is expected to be brighter with the new Government taking key initiatives for the development of infrastructure, including roads.
To get a bird’s eye-view, MOTORINDIA recently had an exclusive interaction with Mr. Ramesh Suri, Vice President, ACMA, and Chairman, Subros Ltd. Mr. Suri, the doyen in the Indian automotive industry who has been in the forefront of sphereheading Subros which manufactures air-conditioning equipments almost for the every OEM to greater heights.
The following are excerpts from the interview:
Could you please express your views on the current policy environment?
With the recent announcement of the Union Budget, the Government has taken a pragmatic approach of encouraging MSMEs and investing in social and infrastructure sectors. We expect the new government to provide an environment conducive for growth and revival of the investment climate, particularly in the automotive sector. Further, with a new Foreign Trade Policy on the anvil, we urge the government to announce long-term and stable trade policies and accord export incentives that are critical for sustaining the industry in these times of global challenges.
How will the election results impact the Indian auto component industry?
With a stable government at the Centre, there is a positive sentiment among business circles. It has shown a positive trend in the auto component industry during the first quarter of this financial year. This fiscal is showing a positive signal. Moreover, the Union Government is also moving in the right direction to improve infrastructure and its allied sectors in an expeditious manner.
Has the recently announced Budget given a boost to the auto component industry?
Given the current scenario, it is a fair Budget as the excise duty on vehicles has not been raised. It also offers export-based incentives to various industries. I think the government will be fully in favour of industrial growth.
How do you foresee the next couple of years for the automobile market?
If you are talking about revival of the industry, it can’t happen overnight. However, there are some positive signs expected in the coming quarters.
What is your main agenda when you become the ACMA President in September?
My primary agenda will be to focus on the smooth working of the auto component industry and support it whenever it is necessary either from the government’s end or in terms of technical capabilities required for streamlining the business. I will also assist component units whenever they require any support. We will also help the industry receive any support needed depending on the prevailing market condition.