Indian Economy News

Mr. Piyush Goyal asks the auto industry to invest more time, effort and funds in R&D to support India’s indigenization efforts

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr.  Piyush Goyal advised the auto component sector to consider the level of investment and time and effort that they have been putting into developing new technologies, new designs, and new products that will aid India's indigenization and localization efforts. He was speaking at the Technology Summit 2023 and the Atmanirbhar Excellence Awards of the Automotive Component Manufacturers Association of India (ACMA). The Minister stated that the expansion of our economy and our businesses will rely on the amount of money we invested in technology and R&D.

He also noted that India had joined the Amritkaal and was leading the globe in important areas like sustainability. He claimed that if we as a country addressed the twin problems of productivity and quality, India would excel due to its managerial prowess, level of technology, talented workforce, and level of dedication. India would also succeed in highly becoming price competitive and in satisfying the demands of both India and the rest of the world. He claimed there were overlaps between the production of auto parts and defence indigenization, and he urged the sector to concentrate on fostering domestic production and fostering self-sufficiency in defence technologies. Additionally, he urged institutions like ACMA to interact with start-ups, provide them with new possibilities, and reward and promote their R&D failures by viewing them as stepping stones to success.

To ensure that duplicate parts don't damage India's reputation in the global market, it is important to additionally concentrate on formalising the informal section of the sector. The Minister provided a new definition of atmanirbharta to the industry, emphasising that it must also ensure that the rest of the world was reliant on India for their needs.

By empowering and supporting suppliers of raw materials and components, the whole supply chain of the auto manufacturing process contributed to the growth of the Indian industry. In the long run, India will develop a strong industrial ecosystem. He urged major corporations to focus on tier 2 and tier 3 suppliers and consider how to assist and motivate them. He urged the auto parts sector to seize the chance and work as a team with all stakeholders, including the government, to make sure that all new chances are taken advantage of to help the world achieve its goals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.