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Government to provide more incentives in automobile sector Print E-mail
Written by Ravi   
Tuesday, 15 January 2008
New Delhi: The Government will provide appropriate incentives relating to large investment both in automobile and auto component sectors. The joint effort between the industry and the government will succeed in giving a major boost to the auto sector. This was stated by Shri Sontosh Mohan Dev, Minister for Heavy Industries & Public Enterprises at the inauguration of the “9th Auto Expo 2008” .

Shri Dev said that the Indian auto sector has emerged as a “Sunrise Sector” in our economy. It is a focal point sector for the Government. On 29th January 2007, Prime Minister Dr. Manmohan Singh launched the “Automotive Mission Plan” (AMP) for the country. This Plan, which is a joint document prepared by Industry and the Government, envisages to make auto sector a 145 billion US dollar industry creating additional employment for 25 million people by 2016. It also envisages additional investment of about 40 billion dollars apart from huge investment downstream. AMP encompasses proactive action in attracting investment, affirmative action with regard to expansion of infrastructure and development of human resources. The Government is fully focused in achieving the targets, which have been agreed upon in the Automotive Mission Plan, the Minister added.

Shri Dev announced that the National Automotive Testing and R&D Infrastructure Project (NATRIP) would be providing state-of-the-art facilities for testing and homologation by 2009. One of the biggest tracks in the world is being built at Indore for the auto sector. This half-a-billion dollar project will ensure that the auto sector is fully complemented with facilities and we are not dependent on outside world. NATRIP will also have several centres of excellence in component design, engine and vehicle dynamics by 2011-12. This will facilitate technology flow to the SMEs in the auto sector.

Shri Dev cautioned that “we must ensure that the Free Trade Agreements and bilateral trade negotiations should not stand on the growth path of this new emerging sector. Every country has given protection to the Auto Sector during its initial growth stage. Unless we do so, we might end up as net importer of automobile and auto components. We have to be globally competitive. If we were to be globally competitive, we need to achieve economy of scale. I would like the industry to bear this aspect in mind so that while investment are made, global competitiveness should be the first priority. There is enough scope to improve the productivity of labour in Auto Sector. We are certainly much more economic in terms of infrastructure costs compared to Europe and North America, but we need to be more competitive with regard to the emerging economies by achieving higher productivity.”

The week-long Auto Expo 2008 has been jointly organised by Automotive Component Manufacturers Association (ACMA), Society of Indian Automobile Manufacturers (SIAM) and Confederation of Indian Industry (CII).

Last Updated ( Thursday, 30 December 2010 )
 
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