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New Delhi : Union Commerce & Industry and Railways Minister Piyush Goyal on September 4, 220, said that in the auto sector, we should move towards global dominance in terms of auto components and automobiles. Addressing the Society of Indian Automobile Manufacturers (SIAM) annual convention, he said “We are improving the scale & quality of what we are producing and serving. With this, we are seeing how we can improve competitiveness to engage with the world.”
The Minister said that reciprocity, high quality, affordability and good economies of scale will help us expand our global engagement, He said that Design, Packaging and Brand Buiding- these are 3 pre-requisites for us if we want to offer our products across the world. He said India is looking at its own domestic capabilities and expansion of its own economic and global engagement.
“India is willing to provide a very facilitated environment. We are engaged with many companies who are looking for more resilient value chains. We have to identify sectors where we have a comparative and competitive edge over other countries. I am sure we will become trusted, reliable partners where countries across the world can look at greater engagement with India,”Goyal said, according to a PIB release.
The Minister said that as we move towards Aatmanirbhar Bharat in the automobile sector, industry’s role becomes even more important. A focused approach in particular sectors will help us increase our contribution to global supply chains. Goyal asked the automotive companies present in the country to ask their principles to reduce royalties. He said that reducing this could help the Indian units of these companies to sail through the crisis easily. He said that the automakers that hold a sizeable chunk of the country’s auto market pay millions of dollars as royalty to their parent companies.
Goyal said that the auto industry needs to re-strategise to emerge stronger from the crisis. “We have to look at sectors where we have the edge over other countries. The auto industry holds that potential. Here we have a large market and companies can get scale which is very important for cost competitiveness,” the minister added.
On the issue of Quality Control Orders (QCO), Goyal said that these should not be seen as barriers. He said that it is high time India starts looking at quality control and provides the world with high-quality products. “Once we get the quality consciousness in the country as a whole, we will transform India’s future, and that is the effort we are making. Quality is never expensive. It brings down the cost. Quality brings in a culture in the company which always brings in more efficiency, better productivity, and makes cost reasonable,” he said.
The Minister said that the auto industry has over the last many years has overcome many difficult situations but has come out stronger. “Our auto industry over the last many years has overcome many difficult situations but has come out stronger because they had the will to achieve. Truly, the industry is our pride. I have no doubt that the resilience that the automobile industry has demonstrated over the last many years, will once again help the industry to emerge stronger from COVID crisis,” he added.
The minister said that to help the auto industry with affordable logistics option, Indian Railways is ready to reduce freight rate. Goyal said that the automakers should find out innovative finance options, which would attract the financiers to lend money, as well as attract the buyers.