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Govt.’s blueprint for auto industry

— PHOTO: PTI

AUTO FEAST: Union Commerce and Industry Minister Kamal Nath (left), CII President Sunil Bharti Mittal (centre), and Minister of Heavy Industry and Public Enterprises Sontosh Mohan Deb during the inaugural function of 9th Auto Expo 2008 in New Delhi on Thursday.

NEW DELHI: Union Commerce and Industry Minister, Kamal Nath, on Thursday said the Centre has developed a blueprint that lays down policies needed to promote the fast growing Indian auto industry. “Through its Automotive Mission Plan prepared in consultation with the industry associations and experts, the Government is committed for development and promotion of auto as well as auto ancillary industry,” said Mr. Kamal Nath while inaugurating the 9th Auto Expo 2008 here.

Stating that innovative fuels, environmental engineering, and greater fuel efficiency are some of the issues that would need greater attention from automobile companies, Mr. Kamal Nath said India was fortunate to have a high engineering skill level, and it must become a leader in innovation for environmental protection within the tenets of development.

“Increasing integration of the global economy will offer greater opportunities for India in the coming years. Already, India’s overseas engagement as represented by the export and import of goods and services has crossed the level of half of gross domestic product (GDP), reaching an aggregate of $450 billion.

In the last four years, the growth of merchandise exports has been over 20 per cent, while services exports have been expanding even faster,” he said.

In 2006-07, India crossed the milestone of one-crore vehicles sold. Passenger cars alone vaulted over the 10-lakh mark, and commercial vehicles sales grew by over 33 per cent. Exports are also going up by about 20 per cent.

“I believe that auto component exports themselves are slated to double from close to $3 billion this year to $6 billion within the coming financial year. Deriving from sophisticated engineering skills, formidable cost advantage and end-to-end production capabilities, India is becoming a destination of choice for sourcing of auto parts”, Mr. Kamal Nath said.

India’s automobile industry had been earning a name for itself as a global player. The auto component industry had similarly exhibited tremendous innovation and competitiveness and was able to match global standards of production.

The scale of the industry was expected to expand exponentially as more and more auto majors from other countries entered the market, the Minister added.

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