Commerce and Industry Minister Piyush Goyal has said that the government will take a serious note if an auto company does not allow its component suppliers to locally manufacture the components. He also expressed hope that the industry will continue to promote manufacturing of components in India.
According to him, it was brought to his attention that some auto ancillaries which have collaborations with probably other companies around the world are also facing some stress and some pressure from their joint venture partners. He said this is the matter the government will take up and view very seriously and if at all any joint venture partner is unhappy, it is free to leave. He added that in such a case Indian companies can give them a fair and honourable exit. But, he emphasized that if anybody is being forced on unfair terms, the domestic firm should approach the authorities and the government will be take it up with its counterparts in other countries.
The minister suggested the industry to focus on five areas including quality, increased value addition in India and focus on new markets. He noted that it is important that the industry gets so beautifully organised that the informal sector also comes into focus when it is dealing with quality and fair competition.
