India’s auto industry is now a major player on the international stage, attracting significant attention from nations eager to establish free trade agreements (FTAs) with the country. Commerce Secretary Sunil Barthwal recently underscored this growing interest, particularly regarding ongoing FTA discussions with key global economies like the United Kingdom (UK).
India’s Auto: An Expansive Powerhouse
Barthwal emphasized India’s vast capabilities in auto manufacturing, covering a range from vehicle assembly to the full value chain. The industry has shown remarkable growth in areas such as auto-grade steel production, component manufacturing, and tire production, with successful exports to international markets.
Electric Vehicles: India’s Sustainable Shift
Reflecting the global move towards sustainable mobility, Barthwal noted the Indian auto sector’s transition from traditional internal combustion engines (ICE) to electric vehicle (EV) battery-based systems. His optimism about India’s potential in this evolving sector is evident, as he states, “When we look at our present strength and the future potential in India, I think it is going to be huge.”
FTA Talks: A Quest for Increased Market Share
Barthwal revealed that nations engaged in FTA negotiations with India are keen on securing a substantial portion of the Indian automobile market. The UK, specifically, is eyeing duty concessions in the auto sector, focusing on the EV segment, with these talks nearing completion.
Diversification: Key to Global Value Chains
The Commerce Secretary stressed the need for diversifying value chains and reducing reliance on single sources. He pointed out the significance of the forthcoming Bharat Mobility Global Expo 2024 as a crucial platform for achieving this diversification.
Export Goals: Aiming High
At the same event, Commerce and Industry Minister Piyush Goyal set a lofty export target for the auto industry. He challenged manufacturers to aim for exporting at least 50% of vehicles produced in India, a substantial leap from the current export rate of 14%.
India’s Edge: A Global Contender
Goyal highlighted India’s competitive advantages in the global auto sector, such as a sizable domestic market, skilled labor, technological expertise, and managerial talent. These factors, he believes, are foundational for India to secure a significant portion of global auto exports.
Bharat Mobility Global Expo 2024
The announcement for the Bharat Mobility Global Expo 2024 was made in New Delhi, with Goyal and Barthwal addressing attendees. Slated to commence on February 1 at Bharat Mandapam, the expo aims to demonstrate India’s capabilities in the mobility sector and position the country as a leader in the industry.
Expo Highlights and Global Collaboration
The expo promises to feature over 600 exhibitors from 50 countries, with a showcase of cutting-edge mobility technologies and innovations. It will include an auto show with electric and hybrid vehicles, tire exhibitions, urban mobility solutions, drones, EV infrastructure, and alternative energy sources like hydrogen. Over 27 top vehicle manufacturers are set to unveil new models and EVs.
Global Involvement: Showcasing Diversity
With pavilions for Japan, Germany, Korea, Taiwan, and Thailand, and participation from the US, Spain, the UAE, Russia, Italy, Turkiye, Singapore, and Belgium, the expo will be a hub of international collaboration. Major international and Indian battery manufacturers and supply chain companies will also be present.
CEO Conclave and NASSCOM’s Contribution
The event will host a CEO Conclave for industry leaders to deliberate on the future of the mobility industry. Additionally, NASSCOM will display India’s prowess in automotive software, technology, and innovation.
India’s escalating role in the global automobile sector, as evidenced by these developments, indicates its potential for increased market access and collaboration. India, with its robust market, skilled workforce, and technological expertise, stands poised to claim a significant share of the global auto export market. The Bharat Mobility Global Expo 2024 symbolizes India’s strengths and its capacity to cultivate international partnerships in the mobility sector.
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