Govt to boost auto spares sector

The government today said it was committed to supporting the Indian automotive component industry and maintaining a level playing field for it even as India signed free trade agreements, preferential trade agreements and business related agreements with other countries.

"A level playing field for India's auto component industry is an issue of concern in a scenario where various free trade agreements, preferential agreements, preferential trade agreements and other business agreements were signed between India and other countries," Priyadarshi Thakur, secretary in the ministry of heavy industries and public enterprises, said in Delhi at the annual session of Automotive Component Manufacturers Association.

He also said the government was supportive of the item specific scrutiny of duty structure of auto components. Acma president Deep Kapuria urged the government to ban second hand and re-manufactured products and ensure that the tariffs applied in India encouraged value addition to products.

Kapuria said the auto components industry has set its eyes on becoming a $18-20 billion business domestically by 2015, up from the current level of $7.3 billion.

The industry had recorded a 40 per cent jump in exports over the previous year, touching $1.4 billion, he said, adding that a target of exports worth $20-25 billion by 2015 was "achievable".