OPEN APP
Home / Economy / India’s auto component industry records trade surplus of $600 mn: Goyal
Listen to this article

NEW DELHI : Commerce and Industry Minister Piyush Goyal on Thursday said that India’s auto components industry for the first time recorded a trade surplus of $600 million.

The minister made the statement while addressing the Atmanirbhar Excellence Awards and 7th Technology Summit 2022, organised by the Automotive Component Manufacturers Association (ACMA).

The trade surplus comes after the government last year raised customs duty on certain auto parts in order to boost domestic production. The Union Budget for FY22 also has proposed an increase in customs duty of several parts such as safety glass, ignition wiring sets, and parts of signalling equipment to 15 per cent from the 7.5-10 per cent range.

Goyal further reiterated that India’s merchandise exports have reached almost $390 billion as of March 14 and will certainly cross $400 billion in the current fiscal.  

Despite the rise in exports, India is witnessing a widening of the trade deficit. After touching a five-month low in January, the gap between India’s merchandise exports and imports widened in February owing to rising crude and commodity prices. 

India’s merchandise exports grew the slowest in five months at 22.36% in February to touch $33.81 billion, while imports grew by 35% to $55.01 billion, leaving a trade deficit of $21.19 billion during the month, up from $17.42 billion in January, according to data from the Commerce Ministry.

Goyal, as per an official statement, said that he was sensitive to auto sector’s concerns related to chips shortage.

 “The recently approved Semicon India Programme with a budget of 76,000 crores would help reduce import dependence and eventually help us become Atmanirbhar in the arena of chips," he said.

He further asked the automotive industry to work on improving the e-mobility ecosystem, including fuel cell vehicles with hydrogen storage, higher lithium-ion battery capacity at a low price and better-charging infrastructure.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout