Praful Patel inaugurates ACMA Automechanika, to discuss fiscal support for auto industry with FM

New Delhi, February 7, 2013: Union minister of heavy industries, Praful Patel, inaugurated the first ACMA-Automechanika New Delhi 2013 trade fair at the Pragati Maidan in New Delhi this morning. He said an event of this kind is important for the country’s automotive sector.

Sounding a note of caution over the slowdown in the economy, the minister said that the automotive sector could take pride in the fact that it has made key strides in R&D and quality. This, he said, would enable it to cater to the OEMs around the world.



In an integrated world, the minister said that an event of this kind is a platform to show India’s prowess in the auto component field. He added that he would facilitate talks with the Indian automotive industry's parent ministry, the Ministry of Heavy Industries, to hold discussions with the Finance Ministry to offer support to the auto industry, which is currently experiencing a slowdown. "The auto sector, including the components industry, is going through a tough time. It's important to revive the sector. We must see how we are able to incentivise the industry. I'll certainly talk to the Finance Minister. We'll try to see what is the best way forward," said Patel.



The Finance Ministry had offered a fiscal stimulus package for the automotive industry during the global economic meltdown in 2008-09.

There are chances that the auto sector may receive some support again, as the sector contributes around 22 percent of the country's manufacturing GDP. Coming as it does, one year after the Auto Expo 2012 which received a lot of flak for bad organising and crowd mismanagement, Patel also said that it is important to have a good infrastructure to hold trade fairs. He said that the need is for spacious venues that are world class and this could even be at locations outside the National Capital Region.

Over 250 exhibitors are taking part in the four-day event that is spread over 9,500 square metres. The event includes trade delegations from China, Italy and Germany.



Starting tomorrow is a two-day seminar on ‘Opportunities & Challenges for Indian Auto Component Industry and Aftermarket’. Held concurrently with the exhibition, it will see various industry sessions including ‘Future of Auto Components Distribution in India’, ‘The Changing Face of the Auto Servicing Industry in India’, ‘Manpower Skill Challenges in the Aftermarket’, ‘Combating Counterfeiting in the Aftermarket’ and ‘International Perspectives on Developments in the Automotive Aftermarket’.

Photography: Mohammed Shafiq/Perfectshoot.Com