Auto Industry's import dependence reduction falls short of expectations, says Minister Piyush Goyal

The decrease in the percentage of imports is not consistent across the auto industry, said Piyush Goyal.

By Shahkar Abidi and Amit Vijay M calendar 12 Sep 2023 Views icon4827 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Auto Industry's import dependence reduction falls short of expectations, says Minister Piyush Goyal

The auto industry has been able to reduce its import dependence, but it is still not at satisfactory levels, said Piyush Goyal, Minister of Commerce and Industry, while addressing the 63rd annual convention organised by the Society of Indian Automobile Manufacturers (SIAM). 

As per Goyal, the decrease in the percentage of imports is not consistent across the auto industry. Some of it is a matter of choice, as certain companies prefer to import rather than rely on localization, apparently under the direction of certain OEMs. 

Offering an example, Goyal noted that in certain instances, investments may come from country X, but the component comes from a different company, not from country X. On investigation, the government officials apparently discovered the component came from a company related to the particular company. "Eventually, the government will need to delve deeper into this issue," said Goyal, before continuing that several Indian companies have faced difficulties despite having collaborations with foreign companies. He insisted that the management of such companies should let the government know about it so that such issues can be taken up at the highest levels. 

The minister emphasised that if there is fair competition and equal opportunities for both countries, then it's acceptable.

Furthermore, Goyal asked OEMs and component suppliers to collaborate in providing skills and reskilling, to enable people to stay employed in India and overseas. 

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