Merchandise exports hit $390 billion as of March 14: Piyush Goyal

As India’s merchandise exports reached nearly $390 billion as of March 14, Minister of Trade and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal , said it would “certainly” cross the $400 billion mark this fiscal year.

He also said the automotive components industry recorded a trade surplus of $600 million for the first time.

Goyal was addressing the Aatmanirbhar Excellence Awards and the 7th Technology Summit 2022, organized by the Automotive Component Manufacturers Association (ACMA) in the capital.

Goyal had also said recently that India would have a service export record of over $240 billion this fiscal year.

Grow in India

Highlighting India’s capabilities in automotive component manufacturing, the minister called on automakers to make greater use of Indian-made components.

Stating that the government has withheld strict standards on import substitution due to Covid-19 and industry assurances on ensuring equal market access, the minister urged automakers to buy local imports and substitution.

It can be noted that India’s automotive industry is worth over $100 billion and contributes 8% of the country’s total exports and accounts for 2.3% of India’s GDP and is expected to become the 3rd largest in the world by 2025.

Shortage of fleas

Goyal also said the government is sensitive to auto sector concerns over chip shortages. The recently approved Semicon India program with a budget of ₹76,000 crore would help reduce import dependency and eventually help us to become Aatmanirbhar in the field of chips, he said.

Goyal added that agile government and agile industry working together could win markets across the world.

Main challenges

The Minister appreciated the resilient players in the automotive industry who have adapted and evolved to sustain the industry despite the five Cs, – the challenges of Covid-19, container shortages, chip shortages, fuel prices raw materials and conflicts.

He also pointed out that India can no longer afford to be closed and protective, but will have to open up its markets while striving to achieve greater penetration in global markets.

Explaining the opportunities for the future of mobility, Goyal said that tomorrow’s mobility will depend on the 7 Cs: common, connected, convenient, traffic-free, charged, clean and state-of-the-art.

Goyal issued a four-point call to action for the automotive components industry to be ready for the future. He asked them to invest more in R&D, in particular electric mobility and battery technology. He urged them to set higher performance benchmarks and aspire to bring 5 Indian companies into the club of the world’s top 50 automotive suppliers.

He encouraged them to identify core competencies and isolate key areas to reduce import dependency. He also called for the design of world-class quality standards in the automotive sector.

Goyal called on the auto industry to work on improving the e-mobility ecosystem, including fuel cell vehicles with hydrogen storage, higher lithium-ion battery capacity at low price and better charging infrastructure.

Published on

March 18, 2022