Praful Patel Inaugurates ACMA Annual Session
Shri Praful Patel today inaugurated the 51st Annual Session and National Conference of the Automotive Component Manufacturers’ Association of India(ACMA) on “Benchmarking for Progress, Performance and Competitiveness”. Speaking on the occasion the Minister said that the Indian Automotive Industry has come a long way. During 2010-11, it registered a total turn over of US$ 73 billion with exports worth US$ 11 billion. Of this the turnover of the auto component sector was US$ 30 billion with exports valued at US$ 5 billion. He said that it was a truly remarkable growth and the auto sector now contributed to about 22% of the national GDP.
Shri Patel said that auto component manufacturing sector had a very bright future even though manufacturing was not easy with hurdles like power shortages, land acquisition etc. to overcome. He said that the Government will endeavour to make the processes much simpler so that the sector could compete with the competition coming from the countries in the south-east region The Minister also said that the Government’s flagship project NATRiP for setting up of state-of-the-art automotive testing, homologation and R&D facilities and the National Automotive Board(NAB) will help the Indian automotive sector in building capabilities for the industry in a great way.
Speaking on the occasion, the Secretary Ministry of Heavy Industries Shri S. Sundareshan said that with the saturation of the traditional export markets of USA and Europe, the potential for growth for Indian auto component companies will be primarily from domestic market rather than from exports. In this context, we must also remember that the traditional advantage of low cost of production enjoyed by the Indian companies is also being fast eroded by competition from other Low Cost Countries such as Malaysia, Thailand, South Africa etc.
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