Government to Provide More
Incentives in Automobile Sector
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” here today.
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).
Source:
Press Information Bureau Date: January 10, 2008
