Union Minister of Commerce and Industry Shri Piyush Goyal addressed the 66th SIAM Annual Convention, calling upon the Indian automotive industry to deepen localization, expand exports, and prepare to serve global markets. The Minister emphasized that the automotive sector would be one of the most important drivers of India's growth story, with companies needing to think globally rather than just serving the domestic market.
Goyal highlighted that nine trade agreements have been finalized in the last four and a half years covering economies with combined GDP of around $60 trillion. The India-EU agreement, described as the 'mother of all deals', will be operational by March next year, while the UK agreement already provides 100% access for most auto components at zero duty. These agreements were negotiated after extensive consultations with sectoral chambers and stakeholders, protecting Indian sensitivities including farmers, fishermen, MSMEs, workers, and industry.
India recorded $863 billion in exports of goods and services last year and has set an ambitious target of $1 trillion for the current year. Exports are growing at around $9 billion per month during the first five months, with merchandise exports growing faster than services after many years. The Minister urged industry to raise the monthly pace to $12 billion to achieve the target.
The automotive sector demonstrates strong growth potential, with ACMA reporting around 16-17% growth and several automobile companies recording over 20% growth. India exported approximately one million cars last year, with growing exports by Maruti and emergence of world-class electric vehicles from Tata Motors and Mahindra, including Maruti's exports of electric cars. The Minister urged the industry to potentially double exports every two years.
Goyal emphasized that AI will help the automotive sector expand capabilities, improve efficiency and competitiveness, and enhance customer service, creating new job profiles while noting that 'job roles may change, but jobs will grow'. Sustainable mobility should go beyond replacing petrol and diesel vehicles with electric vehicles and must have both environmental and economic dimensions, questioning claims of indigenization involving only 10-15% value addition to imported goods.
The Government is monitoring company-wise import-export data to assess actual levels of indigenization and urged companies unable to localize certain products to compensate by expanding exports. The Government is seeking to secure the 'four M's of mobility' through trusted global partnerships: molecules (rare earths, magnets, Critical Mineral Mission), modules (components still being imported), megawatts (energy self-sufficiency), and markets (export opportunities).
Support measures include the ₹1 lakh crore Research and Development Innovation Fund, support for critical minerals exploration including ocean exploration and participation in Pax Silica with the United States, plug-and-play infrastructure for large automotive projects, and facilitation of country-specific industrial parks based on industry demand. The Minister cited example of startup innovation demonstrating two-wheeler motors without permanent magnets that are cheaper, lighter, and deliver better output.
Goyal stressed that India has a clear roadmap to become a developed nation by 2047 and competing with the best in the world is essential to achieving Viksit Bharat 2047, with government support for the industry's growth and export ambitions.