New Delhi [India], September 9 : Commerce Minister Piyush Goyal expressed confidence that the auto component sector will reach the USD 100 billion export target by 2030, making the sector one of the largest job creators in the country.
He made the remarks at the annual session of the Automotive Component Manufacturers Association of India (ACMA) on Monday here in the national capital.
As per reports, the auto component exports in 2023-24 were to the tune of USD 21 billion.
Goyal said that as India is progressing to become the third largest economy in the world in terms of Gross Domestic Product (GDP), the auto sector must also strive to become the world leader from currently being the third largest auto market in the world.
He urged the industry leaders to set a roadmap to achieve the target, besides stressing combining organic growth with outreach across the world along with technological improvements.
The minister encouraged the industry members to focus on research and development (R&D).
He urged the participants to take advantage of the Rs 1 lakh crore Anusandhan National Research Foundation (ANRF) fund and utilise it to support public-private academia partnerships in the auto sector.
Goyal said that India's auto sector is well poised to attract investment from abroad, and the industry can explore investment from EFTA countries.
He further stated that India should be ready to capture the opportunities in new-age technologies like electric vehicles (EVs) and their related ecosystems, along with other upcoming opportunities like the bicycle sector.
The Minister invited the attendees to make use of the government's recent initiative, industrial smart cities, for their development and export promotion.
He urged the industry to become indigenous suppliers and manufacturers to become a leading exporter of auto components.
He also spoke of the advantage India has in its 1.4 billion aspirational Indians and said that there is huge scope for auto sector to achieve economies of scale through the domestic market.
Goyal urged the industry stakeholders to educate customers, especially for commercial vehicle owners, on the usage of OEM (original equipment manufacturer) products for their value for money, quality, cost-effectiveness and longevity they provide in terms of repairs and spares.
Union Minister of State for Commerce and Industry, Jitin Prasada, also attended the event. He also encouraged auto component sector to promote exports.
Prasada added that the component sector benefits from the growing auto sector in the country and urged the participants to create more jobs in the country.
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