Indian Economy News

India’s auto component industry records trade surplus of $600 mn: Goyal

  • IBEF
  • March 21, 2022

India's auto components business, according to Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles Mr. Piyush Goyal, has generated a trade surplus of US$ 600 million for the first time. The trade surplus comes after the government boosted customs duties on several auto parts last year in an effort to stimulate domestic manufacture. The Union Budget for FY22 also proposes a 15% rise in customs duty on a number of items, including safety glass, ignition wiring sets, and signalling equipment parts, up from the current range of 7.5-10%.

He said that he was sensitive to auto sector’s concerns related to chips shortage.  “The recently approved Semicon India Programme with a budget of ₹76,000 crores (US$ 9.99 billion) would help reduce import dependence and eventually help us become Atmanirbhar in the arena of chips," he said. He also urged the car sector to work on enhancing the e-mobility ecosystem, which includes fuel cell vehicles with hydrogen storage, bigger lithium-ion battery capacity at a lower cost, and improved charging infrastructure. He went on to say that India's merchandise exports had reached over US$ 390 billion as of March 14 and will very probably surpass US$ 400 billion this fiscal year

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