‘Make India a manufacturing hub’

India is gradually becoming a global hub for detailed engineering and research and development and the government will encourage more original equipment manufacturers (OEM’s) around the world to use the country as a platform for outsourcing. Stating this at the inaugural of the 7th Auto Expo here, Deputy Prime Minister L.K. Advani said the country is committed to participate in free trade agreements (FTA) with other nations in the region and asked the Indian auto industry to play a pivotal role and seize the global opportunity.

‘‘To make India a truly sourcing hub, the Indian automotive industry needs to increase its attention and expenditure on research,’’ Advani added. Advani asked the Indian auto-component industry to partner not only Indian auto manufacturers, but to global OEM’s as well. He said that the global rush towards lower costs component outsourcing provides with a window of opportunity like never before. He said that he was ‘‘confident that with continued commitment to total quality management (TQM) and investment in R&D, the auto component sector will be able to build on its inherent strength, take on global competition, and realise the ambition of building Indian MNCs.’’

Advani said that India is committed to participate in the free trade arrangements with several countries and regions. SAFTA, the India- ASEAN Free Trade agreement (FTA), the India-Thailand FTA must be viewed as an opportunity for Indian automotive industry to become truly global players, he added. Society of Indian Auto Manufacturers (SIAM) president Jagdish Khattar, appreciated the policy of the government of systematically bringing down the customs and excise duties. He also lauded the government for increasing investments in the infrastructure sector, which he said would greatly help the auto sector. The Auto Expo 2004 is being jointly organised by the Confederation of Indian Industry (CII), Auto Component Manufacturers Association (Acma) and Society of Indian Auto Manufacturers, (Siam) in New Delhi.