BL reported that FICCI has suggested measures to revive growth in Indian automotive sector and double its contribution to GDP from the existing 5% to 10%.
In a study on Automotive Policies and Incentives in Developing Countries, FICCI said that India remains a small player in the world automotive market with a share of around 3% in world production of passenger cars and commercial vehicles and a share of 0.6% in world automotive exports.
The study said that several developing countries such as Thailand, Brazil, South Africa, China and Malaysia were providing liberal assistance and incentives to their automobile sector to attract foreign investment and to develop domestic manufacturing capacity in automotive sector.
It said that these benefits need to be complemented by appropriate tariff policy to safeguard the domestic auto industry from surge in imports and to develop adequate indigenous manufacturing base.
In this context, FICCI study added that the implications of the proposed anti concentration principles in WTO NAMA negotiations and proliferation of FTAs that could significantly impact the Indian automotive sector.
It said that currently, India is the 8th largest manufacturer of commercial vehicles and 9th largest manufacturer of cars. Whereas, China is the second largest manufacturer of cars and commercial vehicles, Brazil is the seventh largest manufacturer of cars and Thailand is fifth largest manufacturer of commercial vehicles.
The study said that India continues to be a net importer of automotive items with a trade deficit of over USD 4 billion in 2005-06 and 2006-07. In 2007-08, the deficit has come down but India continues to be a net importer of these items.
FICCI further added that Government could consider providing income tax holidays, industrial adjustment fund, import duty concessions on machinery, incentivising eco-cars, setting up technology acquisition fund, dedicated infrastructure for auto sector, export market development assistance.
(Sourced from Business Line)
In a study on Automotive Policies and Incentives in Developing Countries, FICCI said that India remains a small player in the world automotive market with a share of around 3% in world production of passenger cars and commercial vehicles and a share of 0.6% in world automotive exports.
The study said that several developing countries such as Thailand, Brazil, South Africa, China and Malaysia were providing liberal assistance and incentives to their automobile sector to attract foreign investment and to develop domestic manufacturing capacity in automotive sector.
It said that these benefits need to be complemented by appropriate tariff policy to safeguard the domestic auto industry from surge in imports and to develop adequate indigenous manufacturing base.
In this context, FICCI study added that the implications of the proposed anti concentration principles in WTO NAMA negotiations and proliferation of FTAs that could significantly impact the Indian automotive sector.
It said that currently, India is the 8th largest manufacturer of commercial vehicles and 9th largest manufacturer of cars. Whereas, China is the second largest manufacturer of cars and commercial vehicles, Brazil is the seventh largest manufacturer of cars and Thailand is fifth largest manufacturer of commercial vehicles.
The study said that India continues to be a net importer of automotive items with a trade deficit of over USD 4 billion in 2005-06 and 2006-07. In 2007-08, the deficit has come down but India continues to be a net importer of these items.
FICCI further added that Government could consider providing income tax holidays, industrial adjustment fund, import duty concessions on machinery, incentivising eco-cars, setting up technology acquisition fund, dedicated infrastructure for auto sector, export market development assistance.
(Sourced from Business Line)
No comments:
Post a Comment