'FTAs to push car industry growth'

India has reiterated its resolve to enter into free trade area (FTA) agreements with other economies in the region.

"India is committed to participate in free trade agreements with several countries in the region," Deputy Prime Minister Lal Krishna Advani said here today while inaugurating the Auto Expo 2004.

Advani said that the South Asian Free Trade Area, the India-Asean Free Trade agreement, the India-Thailand FTA must all be viewed as an opportunity for the Indian automotive industry to become truly global players. He urged the industry to "go out, invest boldly and grasp the global business opportunity".

Advani added that as India gradually becomes the global hub for detailed engineering and research and development, it would encourage more original equipment manufacturers (OEMs) around the world to use India as a platform for outsourcing as well as a global R&D hub.

"To make this a reality, the Indian automotive industry needs to increase its attention and expenditure on research," he added.

The Auto Expo is being jointly inaugurated by the Confederation of Indian Industry (CII), Auto Component Manufacturers Association (ACMA) and Society of Indian Auto Manufacturers, (SIAM).

Advani on the occasion asked the Indian automobile components industry to partner not only Indian automobile manufacturers but to global OEMs as well.

He said that the global rush towards lower costs component outsourcing provides with a window of opportunity like never before.

He said that he was "confident that with continued commitment to Total Quality Management and Investment in R&D, the automobile component sector will be able to build on its inherent strength and take on global competition, and realise the ambition of building Indian MNCs".

Advani added that the automotive industry anywhere in the world has been a key indicator of economic development.

He added that mobility was something which every individual craves for and people seek access to convenient modes of transportation, and it was here that the automotive industry plays a meaningful role.

He said that as the Indian economy had grown strongly, there had been a corresponding demand for automotive products "" from the personalized two-wheelers to multi-axle goods and people carriers.