India Manufacturing Talk

Government Plan for Auto Component Manufacturers

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• Author: Nikhil
• September 20, 2009
• Category: Automotive, Goverment Policy

In what is perhaps the only whiff of this, The Financial Express ran this article on September 4th which I had completely missed out on.   What was interestingly pointed out was that the government was working out a scheme to help auto component manufacturers who largely come from the SME segment.  Some excerpts from the article had some very encouraging remarks from the Heavy Industries and Public Enterprises Minister, Villasrao Deshmukh at the ACMA Annual Conference;

My ministry is examining the feasibility of having a separate scheme that can facilitate financing to the sector, as most small and medium auto component enterprises rarely have the means to raise the required resources on their own

So far I have not been able to find anything on the web on details.  Should be an interesting plan which would be very well accepted in the auto manufacturing sector which hasn’t seen too many bright spots this past few months.

Another interesting point made in the article came from Satyanarayana Dash, Secretary, Ministry of Heavy Industries:

The future of the automotive industry is in small and compact cars and since India has the potential of emerging as the global hub for small cars, the industry should focus on investing in skill development and innovation to sustain their competitive advantage.

Well most in the industry have had a good feel for that for some time now.  Its encouraging to see that the government has noticed it.  The big question is if the ministry will move beyond rhetoric.

Link: 49th SIAM Annual Convention

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