Nithin Gadkari Sends Out Warning To All Automobile Manufacturers In India

Recently The Road and Transport Minister Nithin Gadkari sent out a warning to all Indian automobile manufacturers.

He sent out a strict message stating that all the components of the automobile manufactured in India must be 100% localized and no more to be imported from outside.

Credit: Bright ideas

He said that very soon the Custom Import Duty will be hiked to a very great extent to prevent imports and empower localization of components manufacturing.

The intent behind this decision appears to be very clear: To manufacture all the domestic components/parts in India.

The Automotive Components Manufacturers Association of India (ACMA) had launched an event where the Honorable Transport Minister reported some stats which said that currently, localization manufacturing in the automobile sector accounts for only about 70%.

He stated that this figure has to grow to 100% and stop all imports of automobile components as early as possible.

The minister has also requested the automobile manufacturing companies to take this into consideration and give a high priority to it.

The Government of India has been very clear with its policy of 'Make In India' and 'Made In India' products. The supply chain network of India will also be strengthened if a 100% localization takes place in the Automotive sector.

It is also working relentlessly to make India a global manufacturing hub in a span of 5 years.

The government also stated that manufacturers must take advantage of its scrapping policy to make full use of raw materials like steel, aluminum, rubber, plastic, etc.