Sustainability and Indigenization: India’s Roadmap for Auto Industry Growth

At the ACMA’s Atmanirbhar Excellence Awards and Technology Summit 2023 in New Delhi, Commerce and Industry Minister Piyush Goyal encouraged the auto industry to prioritize research and development (R&D) and invest more time, effort, and funds in order to support India’s indigenization efforts.

This, he believes, will allow India to provide solutions to other countries and reduce its dependency on their R&D in the future.

Goyal emphasized India’s leading role in sustainability and other crucial arenas, noting that the country’s economic growth and business development will depend on the level of investment in technology and R&D. He encouraged India to address the twin challenges of productivity and quality, and with a focus on these aspects, India can excel in technology, managerial capabilities, skilled workforce, and commitment levels, leading to price competitiveness and success in meeting both India’s and the world’s needs.

The Minister urged the auto industry to support small suppliers and indigenize the entire value chain, including formalizing the informal portion of the sector to ensure that duplicate components don’t affect India’s credibility in the global market. He also called on the industry to speak out against copyright and patent infringement.

In addition, Goyal asked the industry to educate their customers on product quality, lifetime costs, and the risks associated with low-quality products.

There are several ideas that can be borrowed and applied to other countries:

1. Emphasis on research and development (R&D): Commerce and Industry Minister Piyush Goyal encouraged the auto industry to invest more time, effort, and funds in R&D to support India’s indigenization efforts. This is important because it can lead to technological advancements, improved product quality, and reduced dependency on other countries. For example, the Indian electric vehicle industry has seen significant growth due to increased investment in R&D, which has helped to improve the quality and range of electric vehicles manufactured in India.

2. Focus on sustainability: Goyal highlighted India’s leading role in sustainability and other crucial arenas. This is an important concept that can be borrowed by other countries to promote environmentally friendly practices in their industries. For example, Norway is a world leader in sustainable transportation, with electric cars accounting for over half of all new car sales in the country in 2020.

3. Support for small suppliers: Goyal urged the auto industry to support small suppliers and indigenize the entire value chain. This can be helpful to other countries by promoting local economic development and job creation. For example, in Rwanda, the government has launched the Made in Rwanda initiative, which supports local manufacturers and encourages the production of locally made products.

4. Formalizing the informal sector: Goyal also called on the auto industry to formalize the informal portion of the sector to ensure that duplicate components don’t affect India’s credibility in the global market. This is an important concept that can be borrowed by other countries to promote formalization and regulation of informal industries. For example, in Kenya, the government has launched the Informal Sector Transformation and Upgrading of Slums Program, which aims to formalize and upgrade informal businesses in the country.

By emphasizing these concepts, other countries can learn from India’s experiences and apply them to their own industries, promoting economic growth, sustainability, and job creation.


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