Industry

Indian automobile industry is encouraging; attracted huge investments: Arun Goel

Arun Goel, Secretary, Ministry of Heavy Industries, at a press conference in Chennai.   | Photo Credit: R. Ragu

Arun Goel, Secretary, Union Ministry of Heavy Industries on Monday said the Indian automobile industry is encouraging and a success story and has attracted huge investments, while replying to a question on the U.S. auto major Ford’s decision to shut shop in the country and whether it is a setback to India.

“The Indian auto industry has got $34.5 billion investment in the five years preceding the COVID. If the Indian auto ecosystem was not attractive, why would that investment have come in?” he quipped at a press conference in Chennai.

Mr. Goel also pointed out excluding the pandemic period, Indian auto industry domestic sales and exports have grown at a compounded annual growth rate of 8-10% in the last five years and jobs have been created.

He interacted with the industry players in Chennai on the production linked incentive (PLI) scheme for the automobile industry rolled out by the Centre.

To a question on whether the government would ask Ford to reconsider its decision after the announcement of the PLI scheme, Mr. Goel said the government rolls out schemes for the industry and not a particular player.

“We are offering a level playing and attractive field when compared to anywhere in the World. Our role is that of a facilitator and we want to attract investments through the PLI scheme. It’s up to each company to decide how they fit in based on their corporate strategy,” he added.

Mr. Goel said the PLI scheme envisages manufacturing of Advanced Automotive Technology products in India and it will cover all sectors of the industry.

“We have asked the auto industry to give us a list of products which are being consumed and not being made in India because either the supply chain is absent or weak. We have asked them to provide details like data on import/export. Our experts will scrutinise the details and we will notify the eligible products,” he added.


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Printable version | Oct 18, 2021 5:30:51 AM | https://www.thehindu.com/business/Industry/indian-automobile-industry-is-encouraging-attracted-huge-investments-arun-goel/article36564139.ece

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