Budget 2015-16: Government support needed for 'Make in India' campaign

  • Feb 24, 2015
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Auto industry believes that for manufacturing global products in India that currently are in the premium price range, government support is essential to increase demand

Government support essential for Make in India campaign

The ‘Make in India’ campaign is targeted at increasing local manufacturing. For the auto industry, this will mean higher build levels not just for consumption in the country but also for export. Higher export content will also improve quality levels that can benefit the domestic output too. Rising production levels leads to increase in jobs in the long run.

Since the vehicle manufacturers and component makers cumulatively contribute a great deal to the economy, even with the levels of production at present, implementation of a successful ‘Make in India’ campaign has the potential to take the industry and the economy to a much higher level.

The Auto Industry is of the opinion that ‘Make in India’ should have happened a long time ago when modern automobile manufacturing was at its nascent stages so that steps in the right direction could have been taken. It is better late than never but manufacturers believe that government support is essential now to boost manufacturing in the Indian auto industry.

The automobile industry features in the ‘Make in India’ program, and has been identified as one of the 25 thrust sectors outlined for growth says Sumit Sawhney, CEO and MD of Renault India. Together with its role in making India a manufacturing powerhouse, we hope that the Government includes some customer friendly policy decisions which will build customer confidence and in turn boost sales, he adds.

Volvo India’s MD, Tomas Ernberg says, “We expect budgetary support from the government to enhance the growth of the sector, resulting in more employment opportunities. ‘Make in India' will drive global companies to set-up manufacturing facilities in India this, in turn, will create jobs.”

Nissan India is a large exporter of cars and as a result is looking very keenly at the decisions taken to boost the make in India campaign. Arun Malhotra – Managing Director, Nissan Motor India Private Limited said, "Nissan India expects introduction of better schemes to promote exports from the country showcasing Indian capability globally.”

While mass market cars continue to be manufactured in India, premium cars are still being assembled due to poor demand compared to most major car selling nations. Same situation arises in the two wheeler segment. India has a massive two wheeler industry but only a handful of motorcycles in the 250cc and above segment are made in India. Top end performance cars and bikes will still be imports but the entire midrange has the potential of being made in India if initiatives are taken by the government to execute the campaign. 

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