Auto parts makers cheer trade policy

The new foreign trade policy, formulated by the central government, in which imports of new vehicles for research and development purposes have been allowed, has been welcomed by the state's auto parts industry.

Majority of the dealers are hoping it will help them produce international level auto parts at much lower costs.

Sharing his views with Business Standard, Ranjodh Singh, Managing Director of G S Radiators said that, now, there will be a major difference in the industry.

"Earlier we were not allowed to use foreign vehicles for research and development purposes. But now, we are hoping to produce auto parts, which can easily compete in the foreign market, at much cheaper rates. This way, the auto parts industry will surely be enriched and can incorporate modern technological developments in the world to produce world class auto components.''

"Many MNCs want to establish themselves in India and for that they want to bring in foreign technology at a lower cost. Before this, the cost of bringing in any technology from abroad meant huge import fees to be paid. So these MNC's preferred China to India. But with this new foreign trade policy, more and more MNC's will invest in auto parts industry. So with the increase in investment in this sector, Indian made auto parts will make a mark all over the world," Ranjodh Singh added.

Gurpargat Singh Kahlon, President of Ludhiana Auto Parts Association said that we all welcome this step of the government. ``To compete at international level, the technology used should always be latest in this business. So there was always an urgent need for the up gradation of technology so that local industrialists can meet international standards. But the technology brought in from other countries can only be used for research and development and not for sale. Earlier, the import duties were very high so most of the industrialists were reluctant for importing technology or vehicles from foreign countries, but now, they can import them more often.''

Indervir Singh Kular, of Vishaw Enterprises said that this new foreign trade policy would help me and my industry to compete at international level.

``Earlier, I was not able to compete with my foreign competitors because our industry lacked latest advancements of the field. But, this step of government, of facilitating the auto parts industrialists will bring boom to the Indian market. We have cheap labour and our people are very hardworking so one can get favourable and positive results soon.''