Piyush Goyal Talks Tough to Auto Industry on Unnecessary Import of Components

India's Commerce and Industry Minister, Mr. Piyush Goyal, has delivered a stern message to the country's automotive industry regarding the import of components. In a bid to bolster domestic manufacturing and self-reliance, Goyal has called on the sector to reevaluate its reliance on foreign imports, particularly in cases where equitable access for Indian companies is not reciprocated. Here are the key highlights from his recent statement:

1. Promoting Self-Reliance :

Mr. Goyal emphasized the importance of promoting self-reliance and reducing dependence on imported components in the Indian automotive sector. This aligns with the Indian government's "Make in India" initiative, which aims to boost domestic manufacturing across various industries.

2. Equitable Access :

The minister stressed the need for Indian companies to assess whether exporting countries provide equal access to Indian businesses in their markets. If such reciprocity is lacking, Goyal urged the automotive industry to reconsider importing components from such countries.

3. Parent Company Influence :

Goyal expressed concerns about certain companies in the sector that may be influenced by sourcing and pricing decisions made by their parent companies, particularly those based abroad. He suggested that Indian subsidiaries of multinational corporations should prioritize local sourcing when feasible.

4. Boosting Domestic Manufacturing :

The government's goal is to strengthen domestic manufacturing capabilities and reduce the trade deficit. Encouraging Indian companies to source locally and invest in domestic manufacturing contributes to achieving this objective.

5. Self-Sufficiency in Auto Parts :

By encouraging the automotive industry to rely less on imported components, the government aims to foster self-sufficiency in the production of auto parts, which is essential for the growth and competitiveness of the sector.

6. Supporting Indian Suppliers :

The minister's statement reflects the government's commitment to supporting Indian suppliers, manufacturers, and small and medium-sized enterprises (SMEs) in the automotive value chain. Increasing domestic procurement can boost the growth of these businesses.

7. Aligning with Aatmanirbhar Bharat :

Mr. Goyal's remarks are in line with the government's Aatmanirbhar Bharat (Self-Reliant India) initiative, which seeks to reduce imports, strengthen domestic industries, and make India a global manufacturing hub.

8. Balancing Trade Relations :

India is actively working to balance trade relations with its global partners, ensuring that Indian businesses receive fair access to international markets while promoting the growth of domestic industries.

Mr. Piyush Goyal's call to the Indian automotive industry underscores the government's commitment to economic self-reliance and boosting domestic manufacturing. It serves as a reminder to businesses to prioritize local sourcing and contribute to India's goal of becoming a self-reliant and globally competitive manufacturing hub.