As a part of India’s self-reliance campaign, the Minister of Road Transport and Highways (Morth), Nitin Gadkari has urged automakers to rely on domestically produced components. To discourage imports, the minister has hinted at further raising duties on auto parts during an event by the Automotive Components Manufacturers Association of India (ACMA).
In the budget announced on Feb 1, the government has already proposed hiking the import duty on drive transmissions, chassis, brakes, and steerings by 15pc. The central government believes Indian manufacturers are already capable of catering to the requirement in the domestic market.
At present, 70pc of the components are provided by local manufacturers. Gadkari said the government plans to take this to 100pc and has urged both, components and auto manufacturers to participate in the government vision.