India can become global auto manufacturing hub as developed economies face rising costs: Piyush Goyal
New Delhi, Sep 3 (IANS) Commerce and Industry Minister Piyush Goyal on Thursday invited global automobile companies to manufacture in India and use the country as a base to serve international markets, saying rising costs, skill shortages and regulatory pressures would increasingly push production away from several developed economies.
Addressing the 66th SIAM Annual Convention, Goyal said India would encourage more global automakers to establish manufacturing operations in the country and take advantage of its economies of scale.
“We will encourage more and more global companies to come into India and use the economies of scale to serve the global scale,” Goyal said.
He urged Indian automobile manufacturers to focus more aggressively on export markets instead of limiting their ambitions to domestic demand. Citing Maruti’s exports to Japan as an example, he said Indian companies could significantly expand their overseas presence by adopting a stronger export-oriented approach.
“Look at export market more actively then we can double every two years if we do what Maruti has done,” Goyal said.
The Minister said the Indian automobile industry had become more competitive with the help of Japanese investments, partnerships and rising localisation. He also stressed the need for technology partnerships that can enable the country to manufacture components currently being imported and subsequently supply them to global markets.
Goyal said India’s strategy for the automotive sector should focus on building resilience around “molecules, modules, megawatts and markets”, covering critical minerals, components and technology, energy security and access to international markets.
He said the government was exploring free trade agreements and other international partnerships to establish stronger linkages for rare earths and critical minerals. India is also promoting ocean exploration and participating in Pax Silica with the US as part of efforts to strengthen access to strategic resources and technologies.
On the proposed India-US bilateral trade agreement, Goyal asserted that India’s key interests had been fully protected. He said the concerns of farmers, fishermen, MSMEs, workers, handloom and handicraft sectors as well as the automobile industry had not been compromised.
“The details of the US deal isn’t out yet so some people are trying to spread total falsehood. I can state with authority that not a single sensitivity of India has been compromised in the US BTA,” he said.
–IANS
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