industry minister Piyush Goyal said the government was working with Australia
and Indonesia to ensure fair access for India-made automobiles and components
to those markets. It would also look at negotiating a free-trade agreement with
the European Union to allow both export and import of certain categories of
vehicles, he said.
The minister also
urged foreign-owned automakers in India to seek a cut in royalties from their
parents, to help reduce their cash outflow and lower vehicle prices.
Speaking at the
annual convention of the Society of Indian Automobile Manufacturers, Goyal said
there were tariff and non-tariff barriers in certain countries which were
hindering India’s exports. “In Australia, there is an import duty, which has
eliminated exports there. Our tyre makers need licence to sell in Indonesia. We
are working to resolve such issues through dialogue,” he said.
To help the auto industry Indian Railways ready to reduce freight rate
Goyal, who is also
the railways minister, said to help the auto industry with affordable
logistics, the Indian Railways was ready to reduce freight rate and would be
“happy to come up with innovative credit guarantee schemes”.
auto-components are one of the 24 focus sectors for the country which India
wants to develop for manufacturing and reduce the dependence on imports in
Govt looking to doll out benefits to auto companies that source
locally and increase exports
The government is
also looking at doling out benefits for auto companies which source more
locally and who have potential to increase exports from the country, the
minister said. Goyal admitted that while GST had helped negate the effect of
cascading taxation, there was a need to reduce logistics costs further to
ensure competitiveness of exports out of India.
emphasised that the agenda of the Atmanirbhar Bharat mission was not to stop
the Indian industry’s global engagement nor reduce imports.
Quality Control Orders not to be seen as barriers
On the issue of
Quality Control Orders, Goyal said these should not be seen as barriers. It is
high time India starts looking at quality control and provide the world with
high-quality products, he said, adding: “Quality is never expensive. It brings
down the cost.”
India’s vehicle and
automotive component makers are already looking at halving imports, currently
around Rs 1 lakh crore a year, in the next 4-5 years, said Mahindra &
Mahindra managing director Pawan Goenka