FICCI wants EPC for Automotive Sector, aims 5% share in global trade in next 10 years

23 February 2009, New Delhi: FICCI has expressed the need for forming a separate Export Promotion Council for India's automotive sector that would work with a mission of achieving 5% share of India in global automotive trade. The Chamber stated that currently the share of India in global automotive trade is only 0.5% which is much lower than that of many other developing countries like Brazil, Mexico, China, Thailand etc. This share has not increased much since 2000, when India's share was 0.2% in global automotive trade, FICCI pointed-out. India's automotive exports stood at $5.8 billion in 2007 compared to $55 billion for China; $44 billion for Mexico; $18.2 billion for Turkey; $14.6 billion for Thailand and $19.5 billion for Brazil in 2007, FICCI said.

Table: Automotive Exports of Select Developing Countries (2007)

Country	Exports to World ($ billion)	% Share in Global Exports
China	54.9	4.4
Mexico	43.9	3.5
Brazil	19.5	1.6
Turkey	18.2	1.5
Thailand	14.6	1.2
India	5.8	0.5

Source: UN

Listing-out the objectives and Terms of Reference of the Export Promotion and Development Council for the Automotive Sector, FICCI said that the primary objective of the Council would be to help the Indian auto sector to achieve 5% share in global trade in next 10 years by identifying the true potential for exports of various categories of automotive products from India. Other terms of reference for the Council would be to suggest conducive fiscal and non-fiscal measures for the promotion of exports of auto-products from India; to make suggestions for long, medium and short term development of the auto sector in India; to review the investment climate in India for attracting foreign investments in automotive sector; to review the technology canvass for Automotive sector in India; to address the skill development issues for automotive sector; to leverage opportunities arising from various trade agreements; diversifying the country base for India's exports of automotive sector etc.

FICCI further said that Indian automotive industry needs to diversify its destinations of exports for which this Council would be instrumental. Currently, India does not export significant amount of automotive items to some of the major importing countries like Australia, Canada, Russia and Saudi Arabia, noted FICCI.

Table: Automotive Imports of Select Countries & India's Exports to these Countries (2007)

Country	Imports from the World ($)	India's Exports to the country ($)
Canada	66.7 billion	27.5 million
Australia	19.6 billion	41.8 million
Russia	32.9 billion	35.2 million
Saudi Arabia	12 billion	42.6 million

Source: UN

This clearly indicates an untapped potential and need for a focused export promotion body to capture these different markets, FICCI emphasised.

Source : Equity Bulls

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