Nitin Gadkari Suggests Export Incentive For The Auto Sector

Union Minister of Transport, Nitin Gadkari, suggested that the government is looking to provide incentives for the auto sector for the products it exports. Currently a lot of manufacturers are making in India and exporting products to other markets and these include, Tata Motors, Mahindra, Renault, Nissan, FCA, Volkswagen, Maruti Suzuki, Hyundai among others. Incentives to make-in-India and export from India will certainly boost manufacturing in the country and also help manufacturers overcome the stress that it presently is under in the domestic market.

Mr. Gadkari said, " A big part of the sales for any manufacturer consists of exports and I have made suggestions to the Finance and the Commerce Minister if we can, for some time, provide incentives to manufacturers for these exports."

The exports from the automobile industry have grown significantly over the past 5 years. In financial year 2013-14 total exports stood at 31,10,584 and this includes passenger vehicles, commercial vehicles, two wheelers, three wheelers and quadricycles. Compare that to FY 2018-19 and you see that the figure has grown significantly with export numbers standing at 46,29,054. This shows a growth in exports of 32.8 per cent in a span of 5 years. Though the passenger vehicle segment might have seen a decline in terms of exports, the two- wheeler market is booming thus pushing the case for exporting from India.

Mr. Gadkari said that India has the potential to become the No.1 manufacturing hub in the world

Uday Kotak, President- Designate, CII and Managing Director & CEO, Kotak Mahindra Bank Ltd said, "Auto industry needs to emphasize on exports to boost supply. This will help to overcome the stress present in the domestic market. The rupee which is weak at present will also favour this method."

Mr. Gadkari said that India has the potential to become the No.1 manufacturing hub in the world. He further stated, "To make India the No.1 manufacturing hub the responsibility falls on both the government and the auto sector. I have had talks with manufacturers where I have asked them to build products that are quality centric not cost centric"