Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

India is taking steps to reduce imports and cut dependency on foreign products including auto components majorly imported from China. 


In the next five years, India plans to cut its auto component imports by 50pc, according to government representatives at the Society of Indian Automobile Manufacturers’s (Siam) 60th Annual Convention held recently via web conference. Siam and Auto Component Manufacturers Association (ACMA) of India have agreed to set this target to cut value of imported components by half in four to five years.


India imports $13.7bn worth of components annually. The government is contemplating raising import duties in a phased manner to boost domestic production and increase competitiveness, said Minister of Commerce and Industry, Piyush Goyal at the Convention. 


The auto sector has the capability to become net exporter in the coming years, Goyal said, adding more investment will be directed towards R&D for better technology. Recently, India changed its definition of Micro, Medium and Small Enterprises (MSME) which enabled more suppliers to cater to the needs of automakers if supply were to exhaust. 


India will start making steel grades that are not currently manufactured in India with he auto and steel industry working together. The focus is to reduce imports especially from China and other Asian countries that supply electric vehicles’ components. These account for almost $5bn worth of imports, said Pawan Goenka, Managing Director of Mahindra and Mahindra. 



Leave a Reply

Your email address will not be published.