India’s auto component sector is set to achieve a $100 billion export target by 2030, making it a significant contributor to the country’s economy and a major job creator. Union Minister of Commerce & Industry, Shri Piyush Goyal, expressed his confidence in the sector’s potential at the 64th Annual Session of the Automotive Component Manufacturers Association of India (ACMA) in New Delhi. He emphasized the importance of setting a roadmap for the auto industry to become world leaders and highlighted the sector’s role in making India a global powerhouse in automotive manufacturing.
Roadmap to Global Leadership in the Auto Component Sector
Shri Piyush Goyal urged industry leaders to set a clear roadmap to achieve the $100 billion export target by 2030. As India progresses to become the third-largest economy globally in terms of Gross Domestic Product (GDP), the auto sector must also aim to become the world leader, currently being the third-largest auto market worldwide.
Key Points:
- India aims to transform from the third-largest auto market to a global leader.
- The focus is on combining organic growth with global outreach and technological advancements.
- Strategic alignment with new-age technologies, such as Electric Vehicles (EVs), is crucial.
Encouraging Innovation and Research in the Auto Sector
Shri Goyal emphasized the need for the auto component industry to invest in Research and Development (R&D) to stay ahead of the global competition. He encouraged industry players to leverage the Rs 1 lakh crore Anusandhan National Research Foundation (ANRF) fund to foster public-private academia partnerships that can drive innovation in the sector.
Key Focus Areas:
- Utilization of the ANRF fund to enhance R&D capabilities.
- Developing partnerships between industry, academia, and public institutions.
- Promoting technological improvements to stay competitive.
Attracting Foreign Investment and Capitalizing on New Opportunities
India’s auto sector is well-positioned to attract foreign investment, particularly from EFTA (European Free Trade Association) countries. Shri Goyal highlighted the immense potential for the industry to explore new investment opportunities, especially in emerging technologies like Electric Vehicles (EVs) and related ecosystems.
Opportunities Identified:
- Investment prospects from EFTA countries and other global markets.
- Leveraging India’s competitive advantage in the EV sector.
- Exploring growth in ancillary sectors, including the bicycle and auto parts industries.
Leveraging Industrial Smart Cities for Development
Shri Goyal invited the auto component sector to make use of the newly announced industrial smart cities initiative. These smart cities are designed to support industrial growth and promote export-oriented manufacturing, providing a conducive environment for businesses to thrive.
Benefits of Industrial Smart Cities:
- Access to modern infrastructure tailored for manufacturing.
- Enhanced connectivity and logistics support for exporters.
- Government incentives for businesses operating within these zones.
Educating Customers on OEM Products
Shri Goyal urged the industry to educate customers, particularly commercial vehicle owners, about the value of using Original Equipment Manufacturer (OEM) products. He emphasized that OEM products offer quality, cost-effectiveness, and durability, which provide better value for money compared to cheaper alternatives.
Key Messages:
- OEM products enhance performance, safety, and longevity.
- Educating customers can drive demand for high-quality, domestically produced components.
- Industry players must focus on raising awareness about the benefits of OEM parts.
India’s Advantage: A Billion Aspirations and a Growing Market
With 1.4 billion aspirational Indians, India’s auto sector has the potential to achieve economies of scale through its vast domestic market. Shri Goyal noted that the country’s young and growing population provides a massive consumer base for automotive products, bolstering both domestic sales and export potential.
Strategic Advantages:
- Large domestic market fuels manufacturing and export capabilities.
- Rising middle class drives demand for quality automotive products.
- Opportunities to scale production and reduce per-unit costs.
Commitment to ‘Viksit Bharat’ by 2047
The Union Minister reaffirmed the Government’s commitment to making India a ‘Viksit Bharat’ (Developed India) by 2047. Shri Goyal praised ACMA’s theme of fostering self-reliance and promoting global competitiveness, which aligns with the broader vision of an Atmanirbhar Bharat (Self-Reliant India).
Government Initiatives:
- Policies aimed at enhancing manufacturing and export capabilities.
- Support for industry-driven innovation and skill development.
- Long-term vision for a globally competitive automotive sector.
Auto Component Sector’s Role in Free Trade Agreements (FTAs)
Shri Goyal commended ACMA for its proactive approach in Free Trade Agreement (FTA) negotiations, which are crucial for expanding India’s global trade footprint. Hosting world-class exhibitions like Bharat Mobility showcases the sector’s strengths and provides a platform for international collaboration.
Highlights:
- FTAs offer opportunities to reduce trade barriers and expand export markets.
- Bharat Mobility events highlight India’s innovation in automotive technologies.
- International partnerships foster growth and open new avenues for trade.
Embracing the Future: Electric Vehicles and New Technologies
Shri Goyal emphasized the need for the auto component industry to embrace new technologies, particularly Electric Vehicles (EVs), which represent the future of mobility. The sector’s ability to innovate and adapt to these changes will determine its success on the global stage.
Focus Areas:
- Development of EV components and related infrastructure.
- Research into sustainable and eco-friendly automotive solutions.
- Collaboration with global tech firms to enhance product offerings.
Conclusion
The auto component sector in India is on a promising path, driven by strategic government initiatives, a focus on R&D, and a commitment to scaling up exports. With the right roadmap, industry support, and investment in new technologies, India’s auto component sector can achieve its ambitious $100 billion export target by 2030, positioning the country as a global leader in automotive manufacturing.
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