Union minister Nitin Gadkari on Saturday asked Indian automobile and components industry not to depend on imports and develop local substitutes for products bought from overseas, saying the country's auto sector has the potential to be the top global manufacturing hub.
The government has also taken several steps to encourage Indian companies to export more, and the components sector has an opportunity to take advantage of measures like changing the definition of MSMEs, the Road Transport and Highways minister said while addressing the annual session of Auto Components Manufacturers Association of India (ACMA).
"I request you, don't encourage imports. Try to take the initiative to find out the alternative, or how can we make import substitutes in India," he said.
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He further said while making those products in India,"Initially the profit margin may be less but when you get the volume, you can be the most important company for exports. I have 100 per cent confidence in you."
Gadkari, who also holds the MSME portfolio, exhorted the components sector to improve production, technology and quality and take advantage of India's cost competitive labour to be a force in the global arena and contribute even more to the country's GDP.
Exuding confidence about the sector, he said,"We can make the Indian automobile industry, within five years, as a number one automobile manufacturing hub in the world."
(Also read: Be 'AtmaNirbhar', aim for global dominance: Piyush Goyal to Indian carmakers)
Stating that the automobile sector is one of the important sectors in the country, he said one of the most significant contributions of the industry is in employment generation apart from its contribution to the country's GDP.
He also expressed hope that the auto industry can play a lead role in the government's vision of self reliant India.
"I feel that the government will be supportive of increasing production, increasing exports and increasing more value addition in the country," he added.
This story has been published from a wire agency feed without modifications to the text.