{"id":50798,"date":"2019-08-01T19:00:51","date_gmt":"2019-08-01T13:30:51","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=50798"},"modified":"2019-08-01T16:11:03","modified_gmt":"2019-08-01T10:41:03","slug":"7-pm-automotive-slump-industrial-policy-1st-august-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-automotive-slump-industrial-policy-1st-august-2019\/","title":{"rendered":"7 PM | Automotive slump &#038; industrial policy | 1st August, 2019"},"content":{"rendered":"\n<p><strong>Context:<\/strong> the\nnational Automotive Mission Plan significance and challenges<\/p>\n\n\n\n<p><strong>Automotive Mission Plan (AMP) 2016-26:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>AMP is a\ncollective vision of government and the Indian automotive industry on where\nvehicles, Auto-Components, and Tractor industries should reach over the next\nten years in terms of size, contributions to India\u2019s development<\/li><li>AMP 2026 also\nseeks to define the trajectory of evolution of the automotive ecosystem in\nIndia including the glide path of specific regulations and policies that govern\nresearch, design and technology<\/li><\/ul>\n\n\n\n<p><strong>The objectives of AMP 2026:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Engine of MAKE IN INDIA:<\/strong> the Indian automotive sector likely to contribute in excess of 12% of\nthe country\u2019s GDP and comprise more than of 40% of manufacturing sector.<\/li><li>Along with that\n13% of excise duty collection of the government. This contribution makes\nautomotive sector will be a prime mover of MAKE IN INDIA INITIATIVE.<\/li><li><strong>Skill India:<\/strong> the automotive industry has numerous backward and forward linkages with\nover two dozen industries across manufacturing and service sectors, across\nrural and urban India and going to contribute nearly 65million jobs in the next\ndecade<\/li><li>Most of the jobs\nin the Indian Automotive industry involve acquiring specialist skills, so the\nautomotive sector will also be a part of skill India programme to provide\nneeded skills to workforce. <\/li><li><strong>Universal sustainable Mobility:<\/strong> AMP 2026 aims to enhance mobility of all people while\nalso addressing the need to minimize the negative externalities like air\npollution, global warming and road accidents.<\/li><li><strong>Net Exports:<\/strong> AMP 2026 seeks to tap the potential of scale up the exports to the\nextent of 35-40% of its overall output over the next 10years and become one of\nthe major automotive export hubs of the world<\/li><li><strong>MSMEs sector:<\/strong> the rapid growth of the Indian Automotive industry will provide a\nstrong fillip to the MSMEs of the country to across multiple sectors, the\ndevelopment of which is one of Governments principle objectives.<\/li><li><strong>Stable policy:<\/strong> given the distinctive contribution of the Indian automotive industry to\nthe socio-economic development of the country, it is imperative that the\nindustry is subjected to comprehensive and stable predictable policy regime<\/li><\/ul>\n\n\n\n<p><strong>The challenges of Automotive sector in India:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Policy initiatives:<\/strong> The key policy initiatives like leapfrogging to BS-VI norms,\n100% Electric Vehicles (EVs) by 2030, alternate fuels have posed several\nchallenges in terms of technology up-gradation, investment, affordability,\nimplementation etc., before the Government, industry, regulatory bodies,\nfinancial institutions<\/li><li><strong>Complete EVs:<\/strong> The proposal for complete electric vehicles is not a panacea\nfor all transport related issues and there are challenges like eco-system\nfunctionality and affordability vis-\u00e0-vis competing and feasible options\navailable viz. hydrogen fuel cell, methanol, bio-diesel which are economically\nand ecologically viable.<\/li><li><strong>Infrastructure:<\/strong> &nbsp;There are also\nchallenges in developing charging infrastructure, lithium mining, low cost\nbattery and disposal of discarded lithium batteries.&nbsp;<\/li><li><strong>Judicial pronouncements:<\/strong>\nthere are also challenges emanating from the judicial pronouncements like the\nautomotive industry has recently faced a ban imposed by the Supreme Court of\nIndia on the diesel vehicles (&gt;2000cc) in NCR and subsequent lifting the ban\nbut with the levy of 1% EPC on the cost of the vehicle at the time of\nregistration.<\/li><li><strong>Rising input cost:<\/strong>\nPresently, the automotive industry is facing\nchallenge of rising input cost, low capacity utilization, price sensitive\nconsumers. In addition, the industry is also not very clear on issues like the\nEnd-of- Life of vehicles, complete methanol economy, other alternate fuels for\nlow carbon transport. Such policy statements reflect instability and\nunpredictability without any clear and long-term roadmap.<\/li><li><strong>Rising imports:<\/strong> India imports\n10 times more auto components from China than it exports. The ever growing\nimport of auto components from China pose a threat to local auto components\nmanufacturing ecosystem and will increase India\u2019s already huge trade deficit\nwith China in the coming years.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Way forward: <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The automotive sector\nin India has an edge over other countries in terms of requisite manufacturing\ninfrastructure, low cost labor, rising middle class, increasing demand from the\nGovernment sector and rural areas which is consistently adding and supporting\nthe growth of automotive sector to newer heights.<\/li><li>&nbsp;Focus on the rural demand and adapting to the\nspecial needs of low cost and robust vehicles will lead automotive growth,\neconomic development and jobs creation in rural areas which is a priority for\nthe Government. <\/li><li>The EVs and low carbon\ntransport shall meet the aspirations of people for safe, secure, affordable and\npollution free transportation.<\/li><li>India being a vast\ncountry has a unique transportation mix not seen across the World viz, three\nwheelers, e-rickshaws, tempos etc. Therefore, India has a distinctive\nrequirement that requires co-existence of all modes of transport as well as all\ntechnologies and fuel types as long as they meet the statutory requirements.<\/li><\/ul>\n\n\n\n<p>Source:\n<a href=\"https:\/\/www.business-standard.com\/article\/opinion\/automotive-slump-industrial-policy-119073101869_1.html\">https:\/\/www.business-standard.com\/article\/opinion\/automotive-slump-industrial-policy-119073101869_1.html<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: the national Automotive Mission Plan significance and challenges Automotive Mission Plan (AMP) 2016-26: AMP is a collective vision of government and the Indian automotive industry on where vehicles, Auto-Components, and Tractor industries should reach over the next ten years in terms of size, contributions to India\u2019s development AMP 2026 also seeks to define the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-automotive-slump-industrial-policy-1st-august-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | Automotive slump &#038; industrial policy | 1st August, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-50798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704764213},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50798"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=50798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=50798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}