New Delhi: June 28 ( Indian language) The Indian auto component industry should aim to increase exports and achieve at least five percent share in global trade in five years. The Indian Auto Parts Manufacturers Association (ACMA) has expressed this opinion.
ACMA Director General Winnie Mehta told PTI that government support through favorable policies is very important to achieve such a goal.
He said that if the government gets support, it will not only help in the growth of business, but will also make the industry self-sufficient.
Mehta said that at present, the auto components industry exports 25 percent of its production ie $ 15.1 billion. Of this, 65 percent is exported to the American and European Union.
He said that the global trade of auto components is $ 1,300 billion. Indian industry accounts for just 1.3 percent of it. We should aim to achieve at least five percent share in global trade in the next five years. However, government support for this is quite important.
Mehta said that while the industry will have to offer better competitive price products with better technology, the government will have to remove the bottlenecks of capital logistics and energy while improving the state of ease of doing business in the true sense.
He said that the rate of capital on logistics is the highest in India with a rate of 9 to 11 percent. This causes us a loss of at least 10–12 percent. Our energy costs must also be globally competitive.
Mehta said that the industry and the government have to be committed to each other to be self-reliant.